Off-grid firm, Husk Power raises $100m for solar minigrids in Nigeria, others

Husk Power, an off-grid energy firm providing solutions in Africa and Asia has raised over $100 million financing in a mix of equity and debt to develop solar minigrid projects in Sub-Saharan Africa and Asia, the company announced Tuesday.

The company said that it has closed $43 million in Series D funding, the largest-ever equity raise in the minigrid industry. Series D equity investors, who collectively deploy more than $10 billion annually, include STOA Infra & Energy, US International Development Finance Corporation, and Proparco.

“The funding cements Husk’s position as the leader in electrifying communities in rural Sub-Saharan Africa and South Asia with an AI-enabled platform of renewable energy services. The equity funding includes new investors STOA Infra & Energy, the US International Development Finance Corporation (DFC), and Proparco, as well as existing investors Shell Ventures, Swedfund and FMO,” said the release.

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In addition, Husk said it leveraged the Series D equity to secure an additional $60 million in debt from several finance institutions, including the European Investment Bank (EIB), and the International Finance Corporation. (IFC).

“We have successfully created and scaled a rural energy platform that is life-changing for our communities from day one. We’re excited to put this new equity and debt to work to supercharge Husk’s growth and unlock the full economic and social potential for a generation of rural Africans and Asians, especially women and youth, that would otherwise be left behind,” said Manoj Sinha, Husk Co-Founder and CEO.

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Husk Power with ambitious growth plans in Africa has been able to secure major support from its partners. Since raising $25 million in equity funding in 2018, the company said it has grown its fleet 20-fold to more than 200 solar hybrid minigrids across two continents, impacted 500,000 people, served more than 10,000 micro, small and medium enterprises (MSMEs), avoided 25,000 tonnes of CO2, achieved a CAGR of 60 percent despite two years of Covid, and maintained exceptional customer loyalty with a retention rate of more than 90 percent.

It has also become the first minigrid company to become profitable at the operating level in the fourth quarter of 2022 and has built a team of more than 500 employees.

The company said the new funding will be applied over the next five years, to grow Husk’s fleet 8-times by adding more than 1,400 new minigrids with a projected 300,000 new connections (one-third of them MSMEs), while avoiding 350,000 tonnes of CO2.

Read also: Husk Power first to surpass 200 minigrids across Asia, Africa

The Africa Sunshot initiative, which Husk announced at the Africa Climate Summit in September 2023, will mobilize at least $500 million for Husk to scale to 2,500 minigrids in 6 countries within 5 years. Two-thirds of the newly announced financing will go toward Sub-Saharan Africa, marking an important first step to achieving the Africa Sunshot goals, the company said.