In recent years, the adoption of solar energy has been steadily gaining momentum in Africa. As the continent faces numerous energy challenges, such as limited access to electricity and heavy reliance on fossil fuels, solar power presents a viable and sustainable alternative.
According to the biennial Gogla-Wohave Bank report released in October last year, the last ten years have been incredible as startups in Africa’s off-grid solar sector have attracted over $2.3 billion in funding.
One of the central players in achieving this landmark is Yellow, an asset financier for solar energy and digital devices in Africa. Now, the startup has raised a $14 million series B funding led by Convergence Partners with participation from the Energy Entrepreneurs Growth Fund, managed by Triple Jump.
The startup’s small home solar system, comprising a 6W-10W panel, 20-50Wh battery, 4 lights, cell phone charger and radio, remains its most popular product. It also sells solar systems with bigger capacities and smartphones. For these small and large solar home systems, users pay a deposit of $10 and $68 respectively, and remit the balance through monthly payments spread over six and 24 months.
With the new funding, Yellow aspires to expand its presence in its current markets, including Malawi, Rwanda, Uganda, Zambia, and Madagascar, provide digital and financial products soon, and get ready for additional debt funding rounds to accelerate its growth. With this latest round, Yellow has now secured a total of $45 million in debt and equity financing.
Mike Heyink and Maya Stewart founded Yellow in Malawi in 2018 with the goal of first bringing solar energy to the nation, which has some of the least access to electricity in the world.
Since then, it has expanded over all of Africa and broadened its product line to include devices like smartphones, gadgets and accessories.