Grace Ashiru
Earthbond, a Nigerian startup that connects small businesses seeking solar solutions with providers, has secured $200,000 in pre-seed funding from Madica, an Africa-focused early-stage investment firm.
This funding will enable Earthbond to onboard more small and medium businesses (SMBs), according to the company. Earthbond claims to have assessed the solar power needs of over 100 businesses in Lagos, with deals potentially worth $1 million. Additionally, more than 1,800 SMBs have joined Earthbond’s waitlist, highlighting the demand for energy transition amid a 40% rise in fuel prices in September.
Founded in 2023 by Chidalu Onyenso, Earthbond assists businesses in determining their solar power requirements and offers financing options to transition to solar energy. The startup connects these businesses with solar solution providers, including solar panel installers, loan providers, and available loan payment options. Business owners simply need to fill out a form on the startup’s website with details about their registered businesses and operating hours.
Earthbond claims to have partnered with four microfinance banks to offer businesses flexible repayment plans of up to 48 months.
Small businesses are the backbone of Nigeria’s economy, yet they face significant challenges due to unreliable power supply and the high costs associated with running diesel and petrol generators. While solar power presents a cleaner energy solution, the high installation costs have prevented many businesses from making the switch. Earthbond’s financing options aim to support business owners who are eager to adopt clean energy without straining their finances.
“Leading the charge of energy transition is no easy feat, and we are glad to be joined by renowned investors who share our passion and drive,” said Chidalu Onyenso, CEO of Earthbond.
The startup also plans to enter the climate tech industry by assisting businesses in tracking their carbon emissions and offering discounts based on the amount of carbon they save. This approach will incentivize businesses to select their service provider. Earthbond aims to penetrate Nigeria’s renewable energy market, joining competitors like Rensource Energy, M-KOPA, and Arnegy in the effort to increase Nigeria’s installed solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029.
Madica will offer a structured program to assist Earthbond in revamping its marketing, onboarding more businesses, providing loans in partnership with additional banks, and developing payment tools for its customers.
“Earthbond has tremendous potential to drive an equitable clean energy future and positively impact Africa. We remain devoted to supporting underrepresented founders,” said Emmanuel Adegboye, head of Madica.
