Husk Power Systems Secures $103 Million in Series D Funding for Cleantech Expansion in Africa and Asia
Husk Power Systems, a pioneering cleantech startup operating in Africa and Asia, has successfully concluded its Series D funding round, raising $103 million.
This significant funding round comprises $43 million in equity investments and $60 million in debt financing, making it the largest equity raise of its kind in the mini-grid industry.
Husk Power Systems, known for its innovative solutions in renewable energy services, has been actively involved in rural electrification since its establishment in 2008.
The Series D equity investors include several distinguished names in the industry, such as STOA Infra & Energy, the US International Development Finance Corporation (DFC), Proparco, Shell Ventures, Swedfund, and FMO.
Simultaneously, the debt financing was secured from notable financial institutions, including the European Investment Bank (EIB) and the International Finance Corporation (IFC).
Husk Power Systems is celebrated for its AI-enabled platform for renewable energy services, which has played a pivotal role in providing clean energy to rural communities in South Asia and sub-Saharan Africa.
The mini-grid systems offered by the company have the potential to provide reliable, affordable, clean, and modern power to a vast number of people, particularly in regions with limited access to electricity.
In addition to expanding energy access, Husk Power Systems has ventured into the transition from fossil fuels to renewables, evolving into an integrated platform offering a wide range of low-carbon and climate-resilient energy services.
These services encompass energy-efficient appliance sales and financing, commercial and industrial rooftop solar, e-mobility, agro-processing, and cold storage solutions.
One of the company’s ambitious initiatives is the deployment of 500 solar mini-grids in Nigeria within the next five years.
To date, it has deployed over 200 mini-grids in Nigeria and India, serving over 10,000 micro, small, and medium-sized enterprises (MSMEs) and mitigating 25,000 tonnes of carbon dioxide emissions through its mini-grids.
With the freshly acquired capital, Husk Power Systems has set its sights on further expansion.
The company aims to grow its mini-grid footprint to 1,500 units, achieving an impressive compound annual growth rate (CAGR) of 60% while maintaining a retention rate of over 90%.
This funding will also increase the number of mini-grids in sub-Saharan Africa, aligning it with the deployment in India.
In its pursuit to provide clean energy to half a billion people by 2030, particularly in Africa, Husk Power Systems has unveiled the “Africa Sunshot” initiative.
This ambitious project seeks to install 2,500 mini-grids across six countries within five years, potentially mobilizing over $500 million in equity and debt financing for Husk Power Systems and paving the way for substantial growth.
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“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.
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