Afrigather Earthbond, a Nigerian startup that connects small companies that wish to purchase photo voltaic options to answer suppliers, has raised a $200,000 pre-seed funding from Madica, an Africa-focused early-stage funding agency.
This funding will assist Earthbond onboard extra small and medium companies (SMBs), the corporate mentioned in an announcement. The startup claims it has audited the solar energy wants of over 100 companies in Lagos in offers that could possibly be value $1 million. Over 1,800 SMBs have joined Earthbond’s waitlist, displaying demand for power transition as gasoline costs rose 40% in September.
Based in 2023 by Chidalu Onyenso, Earthbond helps companies decide how a lot solar energy they want and supplies financing choices to go photo voltaic. It connects these companies with photo voltaic answer suppliers, equivalent to photo voltaic panel installers, mortgage suppliers, and accessible mortgage fee choices. Enterprise homeowners solely must fill in particulars of their registered companies and working hours on a kind on the startup’s web site.
Earthbond claims it has partnered with 4 microfinance banks to supply companies with versatile compensation plans of as much as 48 months.
Small companies are the spine of Nigeria’s financial system, however they’re closely burdened by unreliable energy provide and the excessive prices of working diesel and petrol turbines. Whereas solar energy presents cleaner power options, the excessive set up prices have deterred many companies from adopting it. Earthbond’s financing possibility will probably be helpful for enterprise homeowners eager to undertake clear power with out pressuring their pockets.
“Main the cost of power transition is not any simple feat and we’re glad to be joined by famend buyers who share our ardour and drive,” mentioned Chidalu Onyenso, Earthbond’s CEO.
The startup additionally plans to faucet into the local weather tech trade by serving to companies monitor their carbon emissions, providing them reductions based mostly on how a lot carbon they save. It will incentivise companies to decide on the supplier. Earthbond will enter Nigeria’s renewable power market, becoming a member of gamers like Rensource Vitality, M-KOPA and Arnegy within the race to spice up Nigeria’s put in photo voltaic capability from 3.13 gigawatts (GW) to five.01 gigawatts (GW) by 2029.
Madica will present a structured program to assist Earthbond revamp its advertising, onboard extra companies, present loans in partnership with extra banks, and construct fee instruments for its prospects.
“Earthbond has great potential to drive an equitable clear power future and positively affect Africa. We stay devoted in our quest to help underrepresented founders,” mentioned Emmanuel Adegboye, head of Madica.
