Yellow Secures 14 Million Dollars Funding to Scale Solar Energy Services Across Africa

Table of Contents

Overview

Yellow, an asset financier for solar energy and digital devices in Africa, has secured $14 million in series B funding. The round was led by Convergence Partners, with participation from the Energy Entrepreneurs Growth Fund managed by Triple Jump, and a follow-on investment from Platform Investment Partners.

Founding and Expansion

Yellow was founded in 2018 by Mike Heyink and Maya Stewart in Malawi, which has one of the lowest access to electricity rates in the world. Since its inception, Yellow has expanded its footprint across Africa, introducing new products such as smartphones to its portfolio.

New Funding and Plans

The newly injected capital will be used to leverage more debt finance, allowing Yellow to reach more customers with financed smartphones and solar systems. The company aims to broaden its product offering to include other mobile financial services while maintaining a focus on deepening its expertise in existing categories.

"We are incredibly excited to see the early stages of sustained growth in Africa," said Heyink, founder and CEO of Yellow. "We have a front-row seat to witness millions of people prospering as a result of joining the digital global economy for the first time."

Market Presence and Penetration

Yellow boasts an impressive network of 1,100 agents who source and make applications for asset finance on behalf of customers through its proprietary Ofeefee app. This has enabled Yellow to reach over 400,000 customers across its five markets.

Customer Reach

Over 400,000 customers in five markets
265% compound annual growth rate (CAGR) over the last four years

Product Offering

Yellow’s most popular product is its small home solar system, comprising a 6W-10W panel, 20-50Wh battery, 4 lights, cellphone charger, and radio. The company also sells larger capacity solar systems and smartphones.

Pricing

Small solar home system: $10 deposit with monthly payments spread over six months
Large solar home system: $68 deposit with monthly payments spread over 24 months

Industry Trends

The investment in Yellow indicates a sustained appetite for deals in startups making solar energy accessible. Clean techs attracted significant attention, with the industry experiencing substantial growth.

Industry Growth

Clean tech industry growth
Increasing demand for renewable energy sources

Conclusion

Yellow’s $14 million series B funding will enable the company to deepen its reach in Africa and expand its product offering. The investment underscores the growing importance of clean tech and renewable energy sources in the region.