Aira secures €150m to accelerate Europe’s switch from gas boilers to heat pumps

European clean energy-tech company Aira has raised €150 million in equity financing from existing backers Altor, Kallskär1, Kinnevik, Lingotto and Temasek to speed up the electrification of residential heating across the continent.

The Stockholm-based firm, launched in June 2023, has quickly expanded into Germany, Italy and the UK, achieving an annual sales run-rate of €200 million. Aira’s customer offer combines monthly payment plans, end-to-end service, and a 15-year guarantee. The company employs 1,200 staff, operates 18 hubs and has opened four Aira Academies to train heat pump installers.

Chief executive Peter Prem said the funding reflects “the strong, long-term support” of its investors and will help Aira “double down” on its mission to take Europe off gas. “We’re transitioning from start-up to scale-up, launching new innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” he said.

The fresh capital will be used to expand Aira’s operations, scale its intelligent energy-tech offering, invest in its Swedish R&D centre, and increase manufacturing capacity at its Wroclaw, Poland factory. The company also plans to deepen its footprint in existing markets and strengthen partnerships in the home and energy sectors to widen its customer base and deliver further cost savings.

With 130 million gas boilers still in use across Europe, residential heating accounts for 10% of the continent’s CO₂ emissions. Aira says replacing a gas boiler with one of its air source heat pumps can cut heating costs by up to 40% and eliminate emissions entirely when paired with clean energy tariffs.

Prem believes the opportunity is vast: “The European heat pump market is expected to exceed €150 billion by 2030. With our vertically integrated model and world-class products, Aira is ready to lead the clean energy transition – one home at a time.”