In a significant move to combat South Africa’s escalating energy crisis, Hohm Energy, a three-year-old clean tech startup, has successfully raised $8 million in seed investment. The funding, led by E3 Capital and 4DX Ventures, marks the largest seed round for a tech startup in South Africa, according to Hohm Energy.

Amidst severe power shortages exceeding 6,000 megawatts, state-owned power generator Eskom has emphasized the urgency of implementing daily electricity rationing to prevent a nationwide grid collapse. The energy crisis is not unique to South Africa, as many African countries face similar challenges, fostering a growing demand for innovative solutions.

Hohm Energy positions itself as a crucial player in this landscape by connecting homeowners and businesses with accredited solar installers, product suppliers, and embedded solar finance. The startup’s model, which integrates software and marketplace functionalities, aims to provide an alternative and sustainable energy source for over 7 million households connected to South Africa’s national grid.

Founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, Hohm Energy streamlines the rooftop solar market value chain, offering design, scheduling, and procurement services for installers while enhancing accessibility for buyers.

CEO Tim Ohlsen highlighted the challenges homeowners face in navigating the complex solar industry. “Purchasing a solar system can inevitably be a very costly investment. Our average order value ranges between $8,000 [and] $12,000,” said Ohlsen. The startup addresses this challenge by matching users with trusted solar installers through extensive research and a unique feature called “Home Ranger,” which supervises each installation to ensure technical and legal compliance.

Hohm Energy’s platform not only empowers customers to harness clean, renewable energy but also provides solar installers with tools and workflows to streamline their processes. The startup aims to reduce friction for all stakeholders involved and unlock new growth potential in the solar industry.

Before founding Hohm Energy, Tim Ohlsen faced scalability challenges with a vertically integrated solar service provider model. In response, Hohm Energy adopted an asset-light approach, focusing on software automation to reduce friction and connect stakeholders more efficiently.

The startup has achieved significant milestones, including generating over 17,000 tailored solar rooftop designs valued at $190 million and facilitating over $90 million in finance applications to retail banking partners. Hohm Energy has witnessed a 4x to 5x increase in GMV (gross merchandise value) and revenue since its launch.

While acknowledging the scalability of its model to other markets facing similar energy challenges, Hohm Energy remains committed to deepening its presence in South Africa. With the recent funding, the startup aims to attain sustainable profitability, strengthen its climate fintech strategy, enhance its technology, and launch a program to train local solar installers.

Vladimir Dugin, senior partner at E3 Capital, expressed excitement about the investment, stating, “With its tech-driven approach, Hohm is at the forefront of South Africa’s green energy revolution.” The startup’s unique position as a software-first business and marketplace sets it apart in the country’s landscape.

As South Africa grapples with ongoing power disruptions, Hohm Energy’s innovative solutions could play a pivotal role in shaping the future of sustainable energy in the region.

d.light, a leading provider of solar-powered solutions, has clinched a significant financial boost of $7.4 million (₦10 billion+) aimed at scaling up its operations in Nigeria. The infusion of funds will primarily fuel the expansion of its Pay-Go personal finance service and enhance access to solar-powered products for low-income households across the country.

The financing, sourced from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund and structured by African Frontier Capital, underscores a strategic move to bolster Nigeria’s renewable energy sector while catering to the energy needs of underserved communities. This initiative aligns with d.light’s broader vision of reaching a billion people in developing nations by 2030, a goal that has seen the company distribute nearly 30 million solar products, impacting over 150 million individuals worldwide.

Established in 2007, d.light embarked on its mission to provide sustainable energy solutions, launching its inaugural solar product in 2008. Since then, the company has expanded its footprint across multiple African markets, including Kenya, Uganda, Tanzania, and now, Nigeria, where it commenced operations in 2022. With the infusion of new capital, d.light aims to accelerate its growth trajectory in Nigeria, tapping into the nation’s vast potential for solar energy adoption.

Nick Imudia, CEO of d.light, emphasized the significance of the financing in extending access to affordable solar products to more Nigerian households, particularly those in low-income brackets. Leveraging its expertise in securitised finance, d.light has successfully raised substantial funding for off-grid solar initiatives in sub-Saharan Africa, a model now replicated to drive its expansion efforts in Nigeria.

The financing arrangement not only reflects Chapel Hill Denham’s commitment to fostering sustainable development but also signifies a pioneering move in local currency securitisation for solar-powered utilities in Nigeria. Bolaji Balogun, CEO of Chapel Hill Denham, highlighted the pivotal role of the asset manager in advancing Nigeria’s renewable energy landscape through innovative financing solutions.

Anshul Rai, Partner for Infrastructure & Climate at Chapel Hill Denham, affirmed the asset manager’s dedication to diversifying financing options for infrastructure providers in Nigeria, with a specific focus on addressing sustainable development challenges. The latest funding injection follows a previous $30 million securitisation facility secured by d.light from the TDB Group in August 2023, showcasing the company’s ability to attract substantial investment to drive its mission forward.

d.light’s stellar performance in Nigeria, evidenced by a remarkable 41% revenue surge in the first half of 2023, underscores the growing demand for solar solutions in the region. With its latest financing secured, d.light is poised to further solidify its position as a key player in Nigeria’s renewable energy landscape, paving the way for sustainable and inclusive energy access nationwide.

In a bold move reflecting the shifting tides of investment trends, Rally Cap VC, known for its focus on fintech in emerging markets, is set to launch a $5 million climate fund spinoff named Rally Cap Climate. The move comes as climate tech gains prominence, with the fintech investor recognizing the growing potential in this sector.

Kenya-based climate tech startup, Amini, serves as an exemplary case, securing pre-seed and seed rounds within six months, a feat rarely achieved in the current startup landscape. Amini attracted substantial backing from influential players like Salesforce Ventures, Female Founders Fund, and Pale Blue Dot, signaling a significant shift of interest towards climate tech as the new frontier for investments.

Over the past three years, climate tech has rapidly become Africa’s second most funded sector, trailing closely behind fintech. The surge can be attributed to the emergence of various climate-focused funds, including Novastar, Satgana, Equator, and AfricaGoGreen Fund (AAGF), actively supporting startups from seed to growth stages. Rally Cap VC, traditionally focused on fintech, is now venturing into the climate tech space with its Rally Cap Climate fund, which has already secured a first close at $2.5 million and aims for a final close of $5 million.

Hayden Simmons, General Partner at Rally Cap VC, shared insights into the decision-making process, stating, “On the pull side, we just found that, increasingly, many of the most exciting calls we were having with founders were on the climate side — and that dovetailed alongside our internal initiative to kind of expand our mandate beyond fintech.”

Despite maintaining a commitment to fintech investments, Rally Cap VC is drawn to a specific type of founder that climate tech attracts — experienced senior executives-turned-founders creating products for business customers. The firm’s strategic move aligns with a broader trend where emerging market-focused investors recognize the commercial attractiveness and venture-backable nature of climate investments.

Kyane Kassiri, Partner at Rally Cap VC, emphasized the firm’s dedication to maintaining its identity even as it explores global opportunities in climate tech. “We stand out from other climate investors in that whenever global climate startups are ready for their solutions to be applied or expanded to Africa or LatAm, we know which doors to knock,” Kassiri said.

Rally Cap VC’s portfolio includes notable climate tech startups like Amini, Circadian, Solfium, and Eli, reflecting a diversified approach across different regions and sectors within the climate tech landscape. The firm is currently finalizing a deal in a Brazilian cleantech, demonstrating its commitment to global climate solutions.

While climate tech startups often fall into the categories of mitigation or adaptation, Rally Cap Climate leans towards adaptation strategies, particularly focusing on software solutions. This approach allows for easier market entry and requires less capital compared to some mitigation strategies that involve significant hardware components.

Simmons clarified, “Some hardware is okay if that’s the wedge. Circadian and Amini both have hardware components, for example. However, the real recurring revenue and IP reside at the software layer. That’s really what we’re investing in, and that’s where we think we can generate the real sort of fintech-esque returns in this market.”

Rally Cap Climate intends to invest between $50,000 and $100,000 in its portfolio companies while providing co-investment opportunities to its limited partners. With a goal of making 50 investments, the fund aims to capitalize on the growing demand for climate solutions while leveraging its existing expertise and networks in emerging markets.

As climate tech continues to gain momentum, Rally Cap VC’s foray into this space reflects a strategic move to stay ahead of the curve and contribute to the global efforts addressing climate change. The $5 million climate fund spinoff is poised to make a significant impact on the emerging markets’ climate tech scene, fostering innovation and sustainability across diverse regions.

Uber Technologies Inc. is currently engaged in discussions to invest a substantial $100 million in the African vehicle-financing startup, Moove, as reported by Bloomberg, citing sources familiar with the matter. If the deal goes through, Uber will join a consortium of investors in a funding round that could raise Moove’s enterprise value to approximately $750 million, up from its current valuation of about $650 million.

The funding round, which is yet to conclude, may see the final figure fluctuate between $75 million and $100 million, according to sources quoted by Bloomberg. In 2023, Moove emerged as one of the most funded startups in Nigeria, securing $76 million amidst a slowdown in funding within the Nigerian startup ecosystem.

Moove utilized the $76 million raised last year to establish itself as the leading tech-driven financial services platform for mobility entrepreneurs, marking the largest single fundraising event by any Nigerian startup in the same year. The funding comprised $28 million in equity, $10 million in venture debt from various funds, and $38 million from undisclosed sources over the past year. BlackRock manages the venture debt, and Mubadala Investment Company led the equity round, attracting both new and existing investors.

Earlier in the month, Moove also secured a debt funding of $10 million from Stride Ventures, a sector-agnostic venture debt fund. The mobility company, which expanded its operations to India in 2023, plans to utilize the new funds to fortify its presence in the Indian market and extend its services to additional cities such as Delhi, Pune, and Kolkata.

Moove, headquartered in Amsterdam, became Uber’s official vehicle-financing partner in sub-Saharan Africa in 2020. This partnership allows drivers to access vehicles without making a down payment, repaying the amount through daily installments deducted from their Uber earnings. The potential $100 million investment from Uber could deepen this partnership, potentially facilitating broader driver financing globally.

Founded in Lagos in 2020 by Nigerian entrepreneurs Ladi Delano and Jide Odunsi, Moove aims to assist aspiring ride-hailing drivers who face challenges in accessing vehicle financing. The startup employs a credit-scoring system to offer financing to drivers, enabling them to purchase new vehicles for ride-hailing, logistics, and deliveries, with repayments based on a percentage of their weekly income.

Roam, the Kenya-based trailblazer in electric vehicle (EV) innovation in Africa, is gearing up for a substantial expansion of its operations following the successful conclusion of a $24 million Series A funding round. The funding, led by Equator Africa, saw participation from key investors including Renew Capital, At One Ventures, TES Ventures, The World We Want, and One Small Planet. Notably, the U.S. International Development Finance Corporation (DFC) has committed to providing Roam with up to $10 million in debt facilities.

This injection of capital is set to propel Roam’s efforts in advancing electric mobility in the region. The company, founded in 2017 with a commitment to fostering a greener and more sustainable future for Africa, plans to utilize the funds to bolster local manufacturing capabilities at its 10,000 sqm facility, touted as East Africa’s largest electric motorcycle assembly plant. Additionally, investments will be made in production tooling to enhance cost-effectiveness and to optimize both local and global supply chain networks.

The ambitious goal of Roam is to revolutionize Africa’s public transport sector by introducing effective and affordable electric buses and motorcycles. The recent funding is seen as a crucial step in realizing this long-term vision.

Renew Capital, one of the leading investors in the Series A round, expressed their commitment to supporting innovative leaders like Roam. Esther Mwikali, Renew Capital Investment and Project Manager, stated, “Roam’s dedication to transforming Africa’s transportation system resonates deeply with our investment philosophy. We’re honored to be part of their journey in redefining African transport, making it more efficient, sustainable, and eco-friendly.”

Equally enthused about the investment is the U.S. International Development Finance Corporation. James Polan, Vice President of the Office of Development Credit at DFC, said, “This significant transaction will support the expansion of Roam’s electric mobility offerings and resonates with our goals for a cleaner future.”

Roam’s CFO, Rajal Upadhyaya, expressed gratitude for the investor support, emphasizing its critical role in achieving the company’s strategic objectives. “As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” he stated.

Roam’s commitment to innovation and sustainability received recognition during a recent visit by Kenya’s President, His Excellency William Ruto, to the Roam Park facility. The visit underscores the national and international significance of Roam’s work in advancing green technology and manufacturing in the region.

With this substantial investment, Roam is poised to play a pivotal role in reshaping the landscape of electric mobility in Africa, ushering in a cleaner and more sustainable future for the continent’s transportation sector.

Logidoo, a pioneering force in the African logistics and e-commerce sector, has proudly announced a significant boost in its seed funding, securing a remarkable $1,550,000 investment. This substantial infusion of capital, led by a consortium of venture capitalists including Maroc Numeric Fund II from Morocco, 216 Capital from Tunisia, Gullit VC from Ethiopia, Founders Factory Africa from Nigeria, Sunny Side Venture Partners from Egypt and Japan, and Kalys Ventures from Morocco, underscores Logidoo’s unique position in transforming the logistics landscape across Africa.

This funding round represents a milestone for Logidoo, spotlighting the market’s confidence in its innovative approach to tackling a critical African challenge: the relatively low intra-trade compared to regions like Asia and the EU. By prioritizing “Cross-border” logistics, Logidoo emerges not just as a logistics provider but as a visionary company actively shaping the African Continental Free Trade Area (AFCFTA) vision into a tangible reality.

Logidoo has carved out a niche for itself as a “Cross-border end-to-end 5PL” provider, a term that encapsulates its groundbreaking approach and sets it apart in the logistics sector. This tagline underscores Logidoo’s commitment to offering comprehensive, cross-border logistics solutions that remain unrivalled in the market.

The company has showcased remarkable traction and operational efficiency. With over 3,000 logistics suppliers aggregated, more than 100,000 operations completed, and over 400 clients served, Logidoo has established a strong presence in 8 countries across the continent. Achieving EBITDA positive status since January 2023 further underscores Logidoo’s financial health and business acumen, setting it apart from other cash-burning logistics startups.

In 2023, Logidoo embarked on an ambitious expansion plan, extending its franchise network to 5 African countries. Bolstered by the latest funding, this strategy aims to solidify Logidoo’s footprint across the continent. Furthermore, the company is enhancing its leadership team by introducing experienced executives, including key positions like CFO and COO, to drive operational excellence and strategic growth.

The founder, Tamsir Ousmane Traoré, brings extensive logistics experience to the table, having taught logistics and served as the Chairman of the logistics commission within the Senegal Private Sector Association. Mohamed Alaoui, a 3PL and courier specialist with over 20 years of experience in Morocco and the sub-region, further complements the team, embodying the perfect Founder-Market Fit and instilling confidence in Logidoo’s direction and strategy.

Headquartered in Senegal, with operations in Morocco, Ivory Coast, and Tunisia, Logidoo is revolutionizing the African logistics industry with its comprehensive digital platform covering the entire logistics value chain. By integrating players from both formal and informal sectors, Logidoo ensures extensive market coverage, ranging from transportation to cash management.

Expressing gratitude to its historical investors (UM6P Ventures, Haské Ventures, Launch Africa, Rachid Salik), as well as its new ones, Logidoo aims to become the essential platform for the development of inter-African trade by notably increasing transactional volumes between the various logistical corridors deployed.

With this significant investment injection, Logidoo stands poised to continue its mission of reshaping African logistics, driving economic growth, and fostering intra-continental trade integration. As it forges ahead, Logidoo remains committed to its vision of a more interconnected, efficient, and prosperous Africa.