Yellow powers Africa expansion with Series B equity round

Yellow, a company that provides affordable and reliable energy and internet connectivity in Africa, has announced the successful first close of its Series B equity round.

The company’s partnership with Energy Entrepreneurs Growth Fund (EEGF) through Triple Jump B.V. will allow it to continue its expansion and provide accessible and affordable clean energy and internet connectivity products to hard-to-reach customers across the continent.

“We are excited to have the support of EEGF,” said Michael Heyink, founder and chief executive of Yellow. “This investment will enable Yellow to accelerate its pursuit of providing accessible and affordable clean energy and internet connectivity products to some of the world’s hardest-to-reach customers.”

Yellow has served over 360 000 customers in Malawi, Rwanda, Uganda, Zambia, and Madagascar, achieving remarkable revenue growth of over 250% compound annual growth rate. Through its solar products, the company has enabled the reduction of over 500 000 metric tonnes of CO2e emissions and is now seeing strong traction in smartphone finance.

The capital raised through this equity round will allow Yellow to execute on its strategy of delivering the best value for money products by identifying and attracting customers committed to investing in assets with long term improvements for their lives.

EEGF’s investment represents a strong vote of confidence in the company’s vision and potential to transform the energy landscape in areas with limited access to modern, reliable and clean forms of energy.

Mark van Doesburgh, deputy head of the direct investments team at Triple Jump, expressed his excitement about partnering with Yellow to support its growth in expanding renewable energy access in East and Southern Africa. “Providing access to clean, affordable and reliable energy is one improvement we can make to people’s lives,” he said.

EEGF provides financing in equity, debt and mezzanine instruments to achieve tailored solutions to meet the changing needs of growing energy companies. With a fund life of 12 years, it provides a longer investment holding and support period, recognising the inherent need for such businesses in emerging economies to unlock value creation to their stakeholders.

This investment marks a significant milestone in Yellow’s journey to expand access to affordable energy and internet connectivity in Africa. The company’s unique technology-enabled and system-driven approach has already impacted the lives of many in Africa, and this partnership with EEGF will allow Yellow to continue making a difference in the region.

Thus far, EEGF has invested in 10 businesses, tailoring capital solutions to meet their specific needs. The fund has set an ambitious goal of reaching over five million beneficiaries, including more than 240 women-led businesses. This move will help to avoid 4.5 million tonnes of greenhouse gas emissions, demonstrating EEGF’s commitment to investing in innovative solutions that address critical global challenges.

READ NEXT: Green Innovation Hub: Scale your green tech solutions