Yellow, a pioneering solar energy and digital device asset financier based in Africa, has announced the successful completion of its Series B funding round, securing an impressive $14 million. The funding was led by Convergence Partners, a renowned investment firm, and saw participation from the Energy Entrepreneurs Growth Fund managed by Triple Jump as well as follow-on investment from Platform Investment Partners.
Established in 2018 in Malawi by founders Mike Heyink and Maya Stewart, Yellow set out with a noble mission to bring affordable solar energy solutions to regions in Africa with limited access to electricity. Since its inception, the company has made remarkable strides, expanding its operations across the continent and diversifying its product offerings to include smartphones and other electronic devices.
The infusion of $14 million in fresh funding will enable Yellow to further strengthen its presence in its existing markets, which encompass Malawi, Rwanda, Uganda, Zambia, and Madagascar. In addition, the company aims to introduce innovative digital and financial products shortly while making strategic preparations for upcoming debt funding rounds to expedite its growth trajectory. This latest funding milestone propels Yellow's total equity funding to an impressive sum of $45 million.
Notably, Yellow has demonstrated its profitability, achieving an outstanding compound annual growth rate (CAGR) of 265% over the past four years. The company has successfully built a vast network of 1,100 agents who utilize the proprietary Ofeefee app to source and submit asset finance applications on behalf of customers. This unique approach has allowed Yellow to reach an extensive customer base of over 400,000 individuals across its five operational markets.
Among Yellow's array of product offerings, its small home solar system has gained significant popularity among consumers. This comprehensive system includes a 6W–10W solar panel, a 20–50Wh battery, four lights, a cellphone charger, and a radio. The company also provides solar systems with larger capacities as well as smartphones, catering to diverse customer needs.
To ensure affordability and accessibility, users are required to deposit $10 for the small home solar system or $68 for the larger system. The remaining balance can be conveniently paid off through monthly installments spread over six or 24 months, depending on the chosen product.
Mike Heyink, the visionary founder and CEO of Yellow, expressed his enthusiasm regarding the company's impressive growth and the profound impact it has on African consumers. Yellow aims to empower millions of individuals by facilitating their entry into the digital global economy and providing them with newfound opportunities for prosperity.
Yellow's recent funding achievement reflects the sustained interest and support for startups dedicated to expanding solar energy accessibility in Africa. According to the 2022 Partech Africa report, cleantech emerged as the second most-funded sector, raising a substantial $863 million in equity funding for cleantech startups in Africa, closely following fintech.
Brandon Doyle, CEO of Convergence Partners, expressed his utmost satisfaction in backing the Yellow team, emphasizing the remarkable alignment between Yellow's objectives and their investment strategy. Through its profitable operations, Yellow effectively addresses the triple challenge of financial inclusion, green energy distribution, and broadband penetration, all while making a positive impact on unbanked communities in Africa's lowest-income countries.
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