Sun Exchange, a crowd-based global solar leasing platform, has secured $2.5 million (R37.8 million) in convertible note financing from ARPF, a Mauritian private equity fund advised by London-based ARCH Emerging Markets Partners.
This follows the company’s close of a $4 million Series A funding round in 2020, led by a $3 million investment from ARCH.
In June last year, business magnate Patrice Motsepe-backed ARCH’s Africa Renewable Power Fund invested $3 million (R50.5 million) in SA’s blockchain-based solar start-up Sun Exchange.
In October 2018, the start-up company received a $500 000 (R7.2 million) seed investment from Alphabit, a multimillion-dollar hedge fund.
Sun Exchange claims to be the world’s first peer-to-peer solar leasing platform, leveraging financial innovation and the power of the crowd to make the environmental, social and economic benefits of solar power accessible and affordable for all.
The latest investment enables Sun Exchange to continue scaling its success using its crowd-based solar leasing platform to facilitate solar power for small to medium organisations in Sub-Saharan Africa, the segment most impacted by rising energy costs, unreliable grid infrastructure and costly backup diesel generators, says the company.
Through its innovative platform, Sun Exchange says it has facilitated solar power for 45 businesses, schools, farms and other organisations in Southern Africa.
According to the firm, in March, the company successfully completed a $1.4 million (R21 million) crowd sale for a landmark 500kW solar and 1MWh battery storage project for agriculture company, Nhimbe Fresh.
The project, Sun Exchange’s largest to date and first outside of SA, is also the largest crowdsourced project in Africa to date, it notes.
Using the Sun Exchange platform, more than 1 700 people from 98 countries bought solar cells that will soon power the Nhimbe Fresh packhouse and cold store facilities. Construction of the solar plant is now under way.
William Barry, MD of ARCH (Renewable Energy Strategy), says: “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.”
Abraham Cambridge, CEO and founder of Sun Exchange, says: “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.”
The company points out that through Sun Exchange, anyone, anywhere in the world can easily buy solar cells and automatically lease them to be installed in high-impact solar projects, powering businesses and organisations in sunny emerging markets.
It explains that solar cell owners offset their carbon footprint while earning from the clean electricity generated.
In turn, businesses and organisations can go solar at no upfront cost, minimising their energy costs and climate impact, Sun Exchange concludes.
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