Sun Exchange, a crowd-sourced global solar leasing platform, has announced that it has received $2.5 million in convertible note financing from ARPF, a Mauritian private equity firm advised by ARCH Emerging Markets Partners Limited in London (ARCH). This follows the company’s $4 million Series A capital round, which was spearheaded by a $3 million investment from ARCH, that closed in 2020.
“Addressing the climate emergency is the top priority on the world’s agenda, as evidenced by last week’s conversations at the UN General Assembly leading up to COP26. While policy action and diplomacy are critical at this juncture, the private sector and individuals have a crucial role to play. Powered by our global community, Sun Exchange closes the solar finance gap for organisations in Africa, addressing the challenge of our lifetime while supporting sustainable economic growth. We are delighted that ARCH has reaffirmed its belief in Sun Exchange and our mission through this investment,” Abraham Cambridge, CEO & Founder, Sun Exchange, said.
Sun Exchange will be able to continue increasing its success by facilitating solar power for small-to-medium businesses in Sub-Saharan Africa, the segment most impacted by escalating energy costs, poor grid infrastructure, and costly backup diesel generators, thanks to the latest funding.
Why The Investor Invested
The Africa Renewable Power Fund is part of the funds under London’s ARCH Emerging Markets Partners’ management. With a size of $200 million, the fund has previously invested in Azimuth Solar Ghana, Achwa Projects 1 & 2 Uganda, among others. The Africa Renewable Energy Fund (AREF) invests into small hydro, wind, geothermal, solar, and biomass projects across Sub-Saharan Africa, excluding South Africa. This investment in Sun Exchange is therefore an extremely rare case. This is also the first blockchain-inspired cleantech startup to be backed from the fund.
“Sun Exchange continues to demonstrate momentum as a fast-emerging leader eliminating obstacles to solar proliferation in Africa. ARCH is committed to working with our portfolio companies and supporting their growth, and we are proud to continue partnering with Sun Exchange on its journey to accelerate the global energy transition,” William Barry, Managing Director, ARCH (Renewable Energy Strategy), said.
A Look At What Sun Exchange Does
Founded in Cape Town (South Africa) in 2014, Sun Exchange, through its blockchain technology platform, connects investors (individuals and institutions) who finance solar energy projects with potential beneficiaries, who live mainly in the areas rural areas of the African continent.
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Sun Exchange has provided solar power to 45 businesses, schools, farms, and other organizations in Southern Africa through their innovative platform. In March, the business successfully completed a $1.4 million crowdsale for Nhimbe Fresh’s landmark 500 kW solar and 1 MWh battery storage project.
Sun Exchange’s largest and first project outside of South Africa, the project is also Africa’s largest crowdsourced initiative to date. More than 1,700 people from 98 countries purchased solar cells through the Sun Exchange network, which will shortly power the Nhimbe Fresh packhouse and cold storage facilities. The solar plant is currently being built.
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The basic idea behind Sun Exchange is simple:
- You buy solar cells — the flat panels that produce energy when they are exposed to sunlight.
- You lease them out to a customer, whose rooftops they will be installed. These are schools, hospitals, churches etc typically. Installation takes a few weeks after the project is fully funded.
- The customer gets electricity from your solar cells and pays you for it. You just sit back.
How to buy solar cells on Sun Exchange
The process itself is pretty simple, especially if you have a credit card.
- Sign up to https://thesunexchange.com
- Once inside, navigate to the currently available projects. Choose one you want to invest in.
- Choose the number of solar cells you wish you to buy.
- Choose whether you want your returns in South Africa’s currency ZAR or BTC (Bitcoin)
- Optionally, choose if you want to donate part of your revenue to a selected cause
- Place the order. You can pay with credit card, Bitcoin or wire transfer.
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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