GoSolr, a promising residential solar energy company in South Africa, has secured a fresh round of investment from African Rainbow Capital (ARC), an empowerment investment holding company led by business magnate Patrice Motsepe. The specific amount of the investment remains undisclosed.
Founded in 2021, GoSolr initially focused on installations in Cape Town and quickly expanded its reach to other major metropolitan areas in 2022. ARC, along with its investment advisory firm operating beyond South Africa, ARCH Emerging Market Partners, had previously committed R249 million ($13.9M) to develop and finance new commercial and industrial solar assets across the African continent in 2020.
ARC’s dedication to sustainable energy initiatives is evident in its support of the Africa Renewable Power Fund, which recently invested $3 million in the local blockchain-based solar startup, Sun Exchange.
As South African households and businesses seek alternative energy solutions, the acquisition of a minority shareholding in GoSolr comes at a critical time. Power utility Eskom’s challenges in maintaining a stable electricity supply have prompted many to explore independent energy options.
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Rooftop solar has emerged as a popular choice for households due to its low maintenance requirements, durable components with extended lifespans, and the prospect of reduced energy costs over time.
GoSolr’s primary proposition revolves around offering solar-as-a-service to households through fixed monthly fees, aiming to expedite the shift towards solar energy in South Africa. The company envisions making residential solar solutions affordable, intelligent, and secure, thereby promoting widespread adoption of solar PV solutions.
The acquisition was facilitated through ARC Financial Services Investments, the financial services investment arm of ARC, with the firm believing that this partnership will foster growth opportunities for both parties. By joining forces with ARC, GoSolr intends to accelerate its operational targets to meet the rising demand for quality and cost-effective solar solutions.
Andrew Middleton, CEO of GoSolr, expressed excitement about the partnership, highlighting the strength of ARC’s balance sheet and its extensive network of corporate opportunities. He believes these factors will enable GoSolr to pursue ambitious growth opportunities successfully.
For ARC, the investment aligns with its strategic focus, with co-CEO Johan van Zyl emphasizing the importance of finding sustainable energy sources to protect the environment and reduce dependency on fossil fuels. Van Zyl is confident that GoSolr’s impressive team with a proven track record will add significant value to ARC’s investment portfolio and benefit clients beyond the portfolio.
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The collaboration between ARC and GoSolr reflects a shared commitment to advancing renewable energy solutions in South Africa and marks another step towards a greener and more sustainable future.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard