Startups with Africa presence draw 58% of off-grid solar funding
TLDR
- Off-grid solar sector raised $425 million in 158 deals last year, with a significant $281 million from debt financing.
- Sun King, d.light, Engie Energy Access, M-KOPA, Zola, and Bboxx accounted for 58% of total investments, highlighting Africa-focused ventures.
- Startups in the sector address energy access challenges by offering tailored solutions for communities without electricity.
Last year, the off-grid solar sector raised a total of $425 million across 158 deals, with a significant portion—$281 million—coming from debt financing.
Sun King, d.light, Engie Energy Access, M-KOPA, Zola, and Bboxx collectively accounted for 58% of the total investments in the sector. This data underscores that a majority of the funding flowed to startups or scale-ups with operations in Africa.
These ventures play a pivotal role in addressing the challenge of energy access. According to the Global Off-Grid Lighting Association (GOGLA), they provide products and solutions tailored to meet the needs of communities lacking access to electricity.
Key Takeaways
Globally, 75% of the population remains without access to electricity, with 46% of those individuals located in Africa. Despite the pressing need for expanded energy access, equity investment in household solar startups has remained relatively low. GOGLA warns that this trend signifies a troubling failure to support the emergence of new companies dedicated to electricity access, which is essential for achieving electrification goals worldwide.
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