Solar Energy and digital devices asset financier, Yellow, has raised $14 million in series B funding to deepen its reach in its existing markets.
The funding round was led by Convergence Partners, with participation from the Energy Entrepreneurs Growth Fund managed by Triple Jump, in addition to follow-on investments from Platform Investment Partners.
The startup seeks to use the funds raised to deepen its reach in its existing markets which include Uganda, Rwanda, Zambia, Madagascar, and Malawi. It also plans to launch digital and financial products in the near term and prepare for future debt funding rounds to ramp up its growth.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Speaking on the funds raised Yellow CEO Mike Heyink said,
“The newly injected capital is being used to leverage more debt finance to reach more customers with financed smartphones and solar systems. While the business will broaden its product offering to include other mobile financial services, growth will primarily be driven by deepening our expertise in our existing product categories”.
Yellow Solar Power is a local start-up that focuses on the last-mile distribution of affordable Pay as you go (PAYG) solar home systems to low-income rural households. The startup is among the asset financiers that have attracted VC funding this year, indicating a continued appetite for deals in startups making solar power accessible.
Founded in Malawi in 2018 by Mike Heyink and Maya Stewart to bring solar energy to the country, since then it has expanded across Africa and broadened its product offerings to include digital devices like smartphones.
Yellow builds cutting-edge software to enable its sales force to serve customers in Africa and is rapidly emerging as one of the continent’s most promising start-ups. Its fleet of solar assets is distributed to the most rural corners of the continent.
The startup partners with only the best-value manufacturers and all its products come with warranty agreements. It operates through a network of 1,100 agents using its Ofeefee app, serving over 400,000 customers. Ofeefee enables digital stock management, deliveries, and warranty servicing in places where no one else does.
Yellow reveals it has achieved a compound annual growth rate of 265% over the past four years. The company’s most popular product is a small home solar system, including a 6W-10W panel, 20-50Wh battery, and cellphone chargers. It also sells solar systems and smartphones.
As one of Africa’s fastest-growing tech start-ups, Yellow employs more than 76 team members across Africa and currently boasts of over 250,000 customers. Among others, the team is comprised of leading software developers, entrepreneurs, and operations executives. The startup is committed to making life better for 10 million everyday African households by 2030.
Yellow believes that the African continent will be driven by digital technology and business models, hence, its purpose is to make life better for everyday African households, as it uses technology to meet their basic needs.