Home energy tech brand Aira secures £125m funding boost

Backed by funds including Lingotto and Temasek, Swedish-based Aira will announce new financing weeks after pledging to create 8,000 British jobs, Sky News understands.

A supplier of heat pumps and other domestic energy technology to European consumers has secured more than £100m of new funding, weeks after pledging to create thousands of jobs in Britain.

Sky News understands that Aira Group, which was established by the founder of prominent battery start-up Northvolt, will say on Tuesday that it has secured €145m (£125m) from some of the world’s biggest investors, including Altor, Kinnevik and Temasek Holdings, the Singaporean state investment fund.

Lingotto, an Italian investment firm chaired by George Osborne, the former chancellor, also participated in the round.

Swedish-based Aira says its mission is to wean European households off of gas consumption, with 130 million fossil fuel-based boilers still in use across the continent, according to the company.

It believes it will ultimately create 8,000 jobs in the UK, with several hundred already working for it in the country at hubs in Manchester and Sheffield, and a London head office.

The employment pledge, which it made at November’s government-sponsored Global Investment Summit, will see the jobs created over the next decade.

Aira is the latest player in the sector – along with the likes of Britain’s Octopus Energy – to raise substantial sums of money to fuel the transition from gas to cleaner energy sources.

The company said its fundraising was significantly oversubscribed, having set an initial target of €85m (£73.1m).

In addition to the equity funding, Aira has secured a €15m (£12.9m) grant from the Polish government to build a manufacturing site that will produce heat pumps.

Martin Lewerth, Aira Group CEO, said: “Aira is investing across the UK to help British households accelerate the important transition from dirty gas boilers to clean heat pumps.

“Aira research recently revealed that nearly six million British families are considering investing in an intelligent heat pump in 2024 and it’s encouraging to read that sales grew 20% in 2023.

“With this in mind, it’s important for us to invest in training and upskill engineers to help us serve our goal of one million customers across the UK over the next decade.”