Sub-Saharan Africa’s adoption of solar energy to electrify homes and close the electricity access gap has increased dramatically.
Solar energy kits are the most popular way to bring sustainable energy to families, according to new research. Malawian asset financier Yellow Africa is leading this energy revolution.
Yellow has financed clean energy solutions in developing countries, promoting financial inclusion and grid connection.
To achieve this innovative goal, Yellow launched a $14 million Series B fundraising round sponsored by Convergence Partners, the Energy Entrepreneurs Growth Fund, and Platform Investment Partners. With this huge investment, Yellow will expand in select Sub-Saharan African regions, strengthening the renewable energy movement.
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Mike Heyink and Maya Stewart founded Yellow in 2018 to close the power access gap in Malawi, its first market. Malawi was among the “top-20 access deficit countries,” along with Nigeria, Ethiopia, Pakistan, Chad, Angola, and Bangladesh. Malawi loved Yellow’s Pay-As-You-Go solar home system. By June 2021, the startup will have electrified 81,919 residences, impacting thousands.
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Uganda, Rwanda, Zambia, and Madagascar are among the African countries where the startup operates. TVs and cell phones are now part of the company’s renewable energy mission.
In Sub-Saharan Africa, 200 million people still lack mobile broadband connections, underscoring the need for holistic solutions. Yellow plans to solve this problem by financing smartphones and solar systems with the newly infused funds.
Yellow Africa Funding Strategy
Yellow wants to broaden its product offering to include other mobile financial services as part of its expansion strategy.
“The newly injected capital is being used to leverage more debt finance to reach more customers with financed smartphones and solar systems,” Yellow CEO and Co-founder Mike Heyink said of the round. While the business will expand its product offering to include other mobile financial services, growth will be driven by expanding our expertise in our core product categories.”
Yellow’s $45 million investment round shows growing support for its purpose. Over the past four years, the solar energy startup has grown 265%, establishing its industry leadership. Yellow has over 1,000 agents, expanding its reach and distribution in its area.
Yellow’s house solar system has a 6W–10W panel, a 20–50Wh battery, four lights, a mobile charger, and a radio.
This system requires a $10 down payment and six monthly instalments. Yellow also offers a larger house solar system with a $68, 24-month commitment. Customers can afford clean energy solutions and change their lives with these flexible payment choices.
Yellow’s vision has driven the solar energy revolution in Sub-Saharan Africa, increasing electricity access and economic opportunity. With large financing, the company can reach more communities and transform them through solar energy and other important services.
Yellow continues to innovate and scale, establishing its role as a catalyst for change, sustainable development, and a brighter future in the region.