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.

Sun Exchange solar crypto Sun Exchange solar crypto

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

South Africa appears to be leading the continent when it comes to the confidence of investors in the African blockchain industry. The latest blockchain startup to raise funds on the continent is Sun Exchange, the peer-to-peer solar leasing platform which enables almost anyone, anywhere in the world, to buy remotely-located solar cells that power schools, businesses and other organisations. The startup has closed its $4 million Series-A funding round, raising $3 million in the process, from Africa Renewable Power Fund managed by London-based ARCH Emerging Markets Partners.

“This milestone unlocks the next phase of growth for Sun Exchange, which includes building our team, creating several new, sustainable, clean energy jobs, and providing our growing user base the opportunity to further diversify their solar cell portfolios across new regions and industries. With our shared passion for driving renewable energy proliferation and sustainability across Africa, ARCH is the perfect partner for Sun Exchange as we scale,” Abe Cambridge, founder and chief executive officer (CEO) of Sun Exchange said. 

Read also:https://afrikanheroes.com/2020/05/31/nespresso-tracks-zimbabwean-coffee-with-blockchain/

Here Is What You Need To Know

• With this investment, Sun Exchange will allow clients “to further diversify their solar cell portfolios across regions and industries.” 
• The company is also exploring a number of different markets in sub-Saharan Africa, including Namibia, Zimbabwe and Nigeria, Cambridge.
• The startup has been trying to secure funding for its Series A from different sources over the past 18 months or so, including, reportedly, an Uprise.Africa crowdfunding campaign that secured some capital for it but which capital the startup ended up returning to investors due to failure to beat deadline from regulatory authorities.
• Earlier this year, similar blockchain-inspired startup Centee also raised some undisclosed amount of funding from an Amsterdam-based VC fund Two Hop Ventures. 

Why The Investor Invested

First off, the $3 million — which closed Sun Exchange’s $4 million Series A — came from the Africa Renewable Power Fund, which 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 is positioned to emerge as an enabling force in the imminent global energy and economic transformation, with a first-of-a-kind platform that harnesses the power of a united global community to unlock the potential of distributed solar power in emerging markets,” said William Barry, managing director of ARCH.

“ARCH is thrilled to partner with Sun Exchange on this journey to expand the success the company has already seen in South Africa throughout ARPF’s target markets in Sub-Saharan Africa,” he said. 

What Sun Exchange Does

The basic idea behind Sun Exchange is simple:

1. You buy solar cells — the flat panels that produce energy when they are exposed to sunlight.
2. 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.
3. The customer gets electricity from your solar cells and pays you for it. You just sit back.
4. As the solar cell replaces electricity otherwise produced by fossil fuels, everyone saves on CO2 emissions.

How to buy solar cells on Sun Exchange

The process itself is pretty simple, especially if you have a credit card.

1. Sign up to https://thesunexchange.com
2. Once inside, navigate to the currently available projects. Choose one you want to invest in.
3. Choose the number of solar cells you wish you buy.
4. Choose whether you want your returns in South Africa’s currency ZAR or BTC (Bitcoin)
5. Optionally, choose if you want to donate part of your revenue to a selected cause
6. Place the order. You can pay with credit card, Bitcoin or wire transfer.

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.