South African climate fintech startup Hohm Energy has successfully closed its seed round with a total funding of $8 million. This marks the largest seed round for a technology startup in South Africa, signalling strong investor confidence in the company’s vision and potential.
The seed round was led by E3 Capital and 4DX Ventures, with participation from new investors such as Breega, E4E Africa, TO.org, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures. This diverse group of investors highlights the broad appeal of Hohm Energy’s mission to accelerate the adoption of rooftop solar in the region.
Accelerating Rooftop Solar Adoption
With the new funding, Hohm Energy plans to accelerate the adoption of rooftop solar in South Africa by investing in its cutting-edge climate fintech strategy. The company aims to make rooftop solar more accessible, trusted, and affordable for everyone by bolstering tech, product innovation, and solar installer skills development.
Read also: Hohm Energy connects South Africans with Solar Energy
Addressing South Africa’s Energy Crisis
Hohm Energy’s efforts come at a crucial time for South Africa, which is facing escalating power shortages and resorting to daily electricity rationing to prevent a nationwide grid collapse. By providing an alternative and sustainable energy source to the 7.7 million addressable households in South Africa, Hohm Energy aims to ease the strain on the national grid and contribute to solving the country’s energy challenges.
Impact and Milestones
To date, Hohm Energy has generated over 17,000 custom solar rooftop designs using its solar proposal engine, worth $190 million, and has originated over $90 million in finance applications to its retail banking partners. These milestones underscore the company’s significant impact in the renewable energy sector in South Africa.
Chief Executive Officer of Hohm Energy, Tim Ohlsen, emphasized the importance of ClimateTech in solving South Africa’s current energy challenges. He highlighted the company’s robust software platform and fintech marketplace, which enable it to offer value to all stakeholders and enhance the efficiency of rooftop solar installations.
Investor Confidence and Support
Vladimir Dugin, Senior Partner at E3 Capital, expressed excitement about the investment in Hohm Energy, noting the company’s tech-driven approach and its role in South Africa’s green energy revolution. He praised the team’s ability to create a “one-stop shop” for all green solutions for residential customers, addressing existing challenges around energy supply.
Hohm Energy’s successful seed round and strategic focus on accelerating rooftop solar adoption in South Africa highlight the company’s commitment to driving positive change in the renewable energy sector. With strong investor support and a clear vision, Hohm Energy is poised to make a significant impact in the fight against climate change and the transition to sustainable energy sources.
