Grace Ashiru
As Africa steadily embraces solar energy to solve its persistent power challenges, Malawi’s solar pioneer Yellow has secured $14 million in a Series B funding round.
This financing event is instrumental in the continent’s growing solar sector, which, according to the biennial Gogla-Wohave Bank report, has witnessed over $2.3 billion in startup investments over the past decade.
Yellow, an industry leader in financing Africa’s solar energy and digital devices, has successfully raised fresh capital from a funding round spearheaded by Convergence Partners. The Energy Entrepreneurs Growth Fund, managed by Triple Jump, also participated.
Yellow’s signature product is a compact home solar system with a 6W-10W panel, 20-50Wh battery, 4 lights, a cell phone charger, and a radio. This kit has seen significant popularity among its customers. Additionally, Yellow offers larger solar systems and smartphones. Users can acquire these home solar solutions by paying an initial deposit, with the remaining balance spread over monthly payments for nths.
Armed with the new funds, Yellow aims to further its reach in existing markets, including Malawi, Rwanda, Uganda, Zambia, and Madagascar. The company also plans to introduce digital and financial products and secure additional debt funding rounds to fuel its growth. Yellow’s total secured debt and equity financing is $45 million following this funding round.
Founded in 2018 by Mike Heyink and Maya Stewart, Yellow began its journey in Malawi to deliver solar energy to the nation, which experiences some of the world’s most severe electricity shortages. The company has since grown its footprint across Africa, expanding its product offering to include smartphones, gadgets, and accessories.
