Koolboks, a Nigerian-based startup providing accessible solar-powered refrigeration, has secured $11M in a mixed funding round to expand its operations across Africa. The investment highlights a growing trend of European development finance institutions (DFIs) backing African startups that offer solutions to critical climate and infrastructure challenges.
The round’s debt financing was notably provided by French public investment bank Bpifrance and the French Facility for Global Environment (FFEM). The equity component was led by climate-focused fund KawiSafi Ventures, with existing investors Aruwa Capital and All On also participating. The financing package is further supported by grants and results-based financing from entities including Innovate UK, the Shell Foundation, and CEI Africa.
Founded in 2018, Koolboks designs and distributes solar-powered freezers that can operate off-grid. The units are equipped with ice batteries that allow them to stay cool for up to four days without power, a critical feature in a continent where consistent electricity is not a given. Each unit is also integrated with Internet of Things (IoT) technology to monitor performance, track energy consumption, and manage payments.
This latest capital injection follows a $2.5M seed round in 2022 and will be used to scale the company’s footprint from 25 countries to new markets, enhance local manufacturing capabilities, and grow its team.
Cooling as a Survival Tool
For millions of small business owners across Africa — from market vendors and small-scale farmers to local clinics and neighbourhood shops — the lack of reliable and affordable cooling is a direct threat to their livelihood. Unstable power grids lead to spoiled food, wasted medicine, and a heavy reliance on expensive and polluting diesel generators.
“Cooling is not about convenience. It’s about survival, dignity, and income,” said Ayoola Dominic, CEO and co-founder of Koolboks. “Every day, small business owners, mostly women, are forced to throw away unsold food or burn diesel just to stay open. This raise allows us to deepen our reach and put power literally back in their hands.”
Koolboks uses a pay-as-you-go (PAYGO) financing model, making its units accessible to customers who cannot afford the upfront cost. Users make small, regular payments via mobile money, and the IoT system can remotely lock the device if payments are missed. To date, the company has deployed over 10,000 units.
A Gender and Climate Lens
The investment also aligns with the growing focus on gender-lens investing. A significant portion of Koolboks’ customers are female entrepreneurs who run small retail businesses. Access to reliable refrigeration can directly increase their income and economic stability.
“As a woman and co-founder, I’ve seen firsthand how access to reliable cooling can transform a small business and a household,” said Deborah Gaël, co-founder of Koolboks. “This isn’t just about technology. It’s about economic freedom for women, for families, for communities.”
Beyond its core product, Koolboks is expanding two adjacent initiatives: Koolbuy, a buy-now-pay-later (BNPL) platform for a wider range of solar-powered appliances, and Scrap4New, a recycling program that refurbishes discarded freezers into IoT-enabled solar units.
The Bigger Picture: European DFIs Look to African Tech
The participation of Bpifrance is particularly noteworthy. As France’s state-backed investment bank and a major LP in hundreds of venture funds, its direct backing of an African startup underscores a strategic interest in climate resilience and sustainable development on the continent.
For European DFIs, asset-financing models like Koolboks’s PAYGO system offer a scalable and commercially viable way to address UN Sustainable Development Goals (SDGs) related to poverty, food security, and clean energy. By providing debt — a less dilutive form of capital — they can help companies like Koolboks scale their physical assets without giving up significant equity, fuelling growth in what is often termed the “productive use” appliance sector.
With rising global temperatures exacerbating the need for effective cooling solutions, Koolboks is positioning itself at the intersection of climate adaptation, financial inclusion, and small business empowerment. The $11M round is not just capital; it’s a validation of its model to keep Africa’s small businesses running, one solar freezer at a time.