Aira, which is positioning itself as the ‘Spotify of heat pumps’ and wants to install more than one million heat pumps in British homes in the next 10 years, said its financing round raised €145m (£124m) from leading European climate tech investors and was “significantly oversubscribed” from its original €85m target.

A spokesperson said: “The equity funding will allow Aira to further accelerate the electrification of residential heating in Europe to enable European households to reduce their energy bills, to drive decarbonisation, and to reduce dependency on imports of natural gas.”

In August the firm purchased Sheffield home renewable specialist All Seasons Energy as part of its strategy. It is opening a Northern Academy alongside the All Seasons Energy site to train hundreds of heat pump installers for this region.

In addition to the new equity funding, the Polish government has granted Aira €15 million for the establishment of a state-of-the-art manufacturing site in Poland to produce heat pumps.

Martin Lewerth, Aira Group CEO, says: "We are thrilled to welcome our new shareholders. Above and beyond the funding, they bring invaluable strategic insights, networks, and expertise.

"Together, we are committed to spearheading the much-needed green revolution in residential heating.

"The completion of our Series B funding makes us well capitalised and ready to accelerate our pan-European platform expansion, significantly reducing both heating bills for households and carbon emissions across Europe.”

Lisa Barclay, executive director of Nesta Impact Investments, said: “The scale of Aira’s ambitions for the UK market is exactly what is needed to meet the country’s net zero commitments, so Nesta Impact Investments is delighted to be investing to support their business.”

Aira: Swedish heat pump firm with Sheffield base raises £120m in equity funding

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