London, UK: Nesta Impact Investments, the Venture Capital investment arm of the innovation agency Nesta, announced today their £2 million investment into heat pump and clean energy service Aira.

Nesta’s investment in Aira is part of the firm’s latest €145 million Series B financing round with leading tech investors from Europe, the US and Asia. The new capital will further its ambition to take Europe off gas and drive the electrification of residential heating, through its accessible, clean energy-tech solutions.

Founded in Stockholm, Sweden by Vargas Holdings, Aira provides an integrated end-to-end service, where consumers can purchase heat pumps through an affordable monthly payment model. Aira also provides an ecosystem of clean energy-tech products to help households have more efficient and lower-cost heating and energy usage. The company is set to become Europe’s number one direct-to-consumer brand within the industry and is backed by leading investors in climate and innovation.

Nesta Impact Investments has invested in Aira as part of its new strategy, from its £50 million fund, which backs purpose-led early-stage ventures. Aira’s aim to drive decarbonisation aligns with Nesta’s mission to create a more sustainable future, where people can heat their homes using clean, green energy sources. UK homes are currently directly responsible for creating approximately 70 million tonnes of CO2 annually, accounting for 17% of all carbon dioxide emissions in the UK.

Lisa Barclay, Executive Director of Nesta Impact Investments, said:

“For over a decade, Nesta Impact Investments has been dedicated to supporting innovative businesses that address serious social challenges, including utilising the expertise of Nesta’s research to help boost these ventures.

“Our investment in Aira brings together our record of supporting purpose-driven businesses with our commitment to reduce household carbon emissions. Aira is making the transition to greener heating more accessible and affordable, filling a gap in the market for heat pumps by providing them without the usual upfront costs and with an end-to-end service from insulation and installation to aftercare. 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.”

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.”

Notes to editors:

1. For more information on Nesta Impact Investments, please contact Kieran Lowe, Media Manager, on 020 7438 2576 or at [email protected].
2. For more information on Aira, please contact Pamela Brown, Chief Marketing Officer, on +44 7884 313192 or at [email protected].

About Nesta Impact Investments

Nesta Impact Investments provides financial, knowledge and network capital to innovative tech ventures that are changing the world for good. We look to back businesses in edtech, foodtech, healthtech, climate tech, the future of work and productivity, that are closely aligned to Nesta’s mission impact goals:

• A sustainable future: To accelerate the decarbonisation of UK households and raise productivity in ways that advance the transition to net zero. Our focus at the moment is on reducing domestic energy consumption, supporting SMEs to adopt green technology and supporting the upskilling needed for a green economy.
• A healthy life: To increase the average number of healthy years lived in the UK, while narrowing health inequalities. Our focus at the moment is on reducing obesity. This includes new food tech, novel ingredients, healthy brands and helping people access healthy foods, as well as relevant behavioural and health tech.
• A fairer start: To narrow the education outcome gap between children growing up in disadvantage and the national average. We look for solutions that deliver high-quality, affordable provision and workforce development. We are also looking at financial inclusion solutions which can reduce stress on families who can then better support the home learning environment.

About Nesta

We are Nesta, the UK's innovation agency for social good. We design, test and scale solutions to society's biggest problems. Our three missions are to give every child a fair start, help people live healthy lives, and create a sustainable future where the economy works for both people and the planet.

For over 20 years, we have worked to support, encourage and inspire innovation. We work in three roles: as an innovation partner working with frontline organisations to design and test new solutions, as a venture builder supporting new and early-stage businesses, and as a system shaper creating the conditions for innovation.

Harnessing the rigour of science and the creativity of design, we work relentlessly to change millions of lives for the better. Find out more at nesta.org.uk