Africa-focused Investor, SunFunder, Raises $70m To Invest In Off-grid Startups

SunFunder, the investment company specializing in solar energy has just completed the mobilization of capital for its Solar Energy Transformation (SET) fund which it intends to invest in solar energy firms in Africa and Asia. SunFunder closed SET at $70m with investment from Oesterreichische Entwicklungsbank AG (OeEB), the Austrian government’s development bank.

Sabine Gaber, member of the Administrative Council of the OeEB
Sabine Gaber, member of the Administrative Council of the OeEB

“Off-grid solutions have played a critical role in providing clean, affordable and reliable energy, especially to rural populations. We are therefore proud to team up with SunFunder — an experienced partner concerned with impact in this area — and to support this innovative fund which improves access to energy for millions of people,” states Sabine Gaber, member of the Administrative Council of the OeEB.

The SET fund was started by SunFunder with the aim of accelerating the electrification process in Africa. This funding mechanism has attracted many other investors such as Swedfund which injected $12 million into it in September 2020. The fund was also funded by the American Development Finance Corporation (DFC), Calvert Impact Capital, Ceniarth, the IKEA Bank of America Foundation, Mercy Investment Services, Schmidt Family Foundation, as well as several individual investors through the Toniic Impact network.

Read also: Africa-focused Investor Sunfunder Defies Covid-19 To Close $140m In Funding For Off-grid Energy Companies

A Look At What SunFunder Does And How Off-grid Companies May Apply For Loans From It

SunFunder provides innovative debt financing for solar enterprises working in emerging and frontier markets. It collaborates with major debt fund investors around the world to unlock capital for solar energy projects. Find out more below.

It invests in solar enterprises across Africa and other regions that need debt financing to scale. The company helps companies that are active in the off-grid, residential, productive use, mini-grid and commercial and industrial solar sectors. These companies range from established global players to early-stage pioneers. In Nigeria, for example, SunFunder invested $ 4 million in Daystar Power to provide solar power to industrial and commercial customers. The investment company has also participated in several fundraisers, including that of solar irrigation system supplier SunFunder and solar home system supplier PEG Africa.

Read also:East African Social Business Incubator Opens Applications

To know more about SunFunder’s loan application process, click here.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

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