Nesta Impact Investments, the venture capital arm of the innovation agency Nesta, announced on 16 January 2024 a £2 million investment in Aira, a heat pump and clean energy service1. The investment forms part of Aira's €145 million Series B financing round, which Nesta said drew in technology investors from Europe, the US and Asia1.
Aira was founded in Stockholm, Sweden by Vargas Holdings, and provides an end-to-end service in which households can buy heat pumps through a monthly payment model rather than paying the full cost upfront1. The company also offers a wider set of clean energy-tech products intended to lower household heating and energy costs1. Nesta said the new capital will support Aira's aim of taking Europe off gas and driving electrification of residential heating1.
The £2 million came from Nesta Impact Investments' £50 million fund, which backs purpose-led early-stage ventures, and is the first investment made under its new strategy1. Nesta said UK homes are directly responsible for creating approximately 70 million tonnes of CO2 annually, accounting for 17 per cent of all carbon dioxide emissions in the UK1.
Lisa Barclay, Executive Director of Nesta Impact Investments, said:
"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."
Martin Lewerth, Aira Group CEO, said the completion of the Series B funding leaves the company "well-capitalised and ready to accelerate our pan-European platform expansion, significantly reducing both heating bills for households and carbon emissions across Europe"1.
Why it matters for households
The upfront cost of a heat pump is one of the barriers cited in the announcement, and Aira's model spreads that cost over monthly payments instead1. For a household weighing up a switch away from a gas boiler, that changes when the money leaves the bank account rather than the total spent, and it ties the equipment, installation and aftercare to a single provider1. Nesta frames the investment as a way to reduce domestic carbon emissions, noting that UK homes account for 17 per cent of the country's carbon dioxide emissions1.
Energy independence at household level rests on what a home uses for heating and where that energy comes from. Electrifying heating shifts a property's demand from gas to electricity, and the announcement presents this as the direction Aira and its investors are backing1. The announcement does not set out running costs, electricity tariffs, grant eligibility or performance figures for any specific property, and none of those details have been reported in it1.
What happens next
No further steps, dates or UK-specific rollout plans are given in the announcement beyond the completion of the Series B round and Aira's stated intention to expand across Europe1. Details of how the £2 million will be used, and of any Aira heat pumps in the UK programme, have not been reported1.
Sources1 cited
- Nesta backs heat pump provider Aira | Nesta, nesta.org.uk