SA startup Sun Exchange has secured $2.5 million in convertible note financing to continue to scale its solar leasing platform.
The startup secured the investment from ARPF, a Mauritian private equity fund advised by London-based ARCH.
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“Sun Exchange continues to demonstrate momentum as a fast-emerging leader eliminating obstacles to solar proliferation in Africa,” ARCH Managing Director, William Barry, said in a statement.
The startup has facilitated 45 solar projects across South Africa and Zimbabwe.
“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.”
The investment comes more than a year after the startup previously received $3 million (R45.6 million) from ARPF during a Series A funding round.
Sun Exchange leases solar cells to schools and businesses
Founded in 2015 by Abe Cambridge, the startup offers crowd-based leasing of solar panels for small-to-medium organisations in Sub-Saharan Africa.
The startup has facilitated 45 solar projects across South Africa and Zimbabwe.
It identifies schools, shops, and other businesses that want to adopt solar power and install solar cells.
It then works with local solar construction partners to evaluate businesses to ensure they meet criteria such as economic viability and social responsibility.
Once evaluated, the startups run a crowdsale for the project’s cells, through which individuals and businesses can sign up to become Sun Exchange members.
They can purchase solar cells in the project’s local currency via credit card, bank transfer, or Bitcoin.
Once the crowdsale sells out, the project will proceed with the installation of the cells. Members can then keep track of the project status and its carbon offset, power generated from the cells, and the revenue they generate.
“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,” Cambridge said.
“We are delighted that ARCH has reaffirmed its belief in Sun Exchange and our mission through this investment.”
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Featured image: Sungrow EMEA via Unsplash
