PayGo Solar Startup Yellow Raises $14 Million in Series B Funding
Yellow, a solar energy and digital devices asset financier, has raised $14 million in a funding round led by Convergence Partners and joined by Energy Entrepreneurs Growth Fund and Platform Investment Partners.
Yellow’s Mission to Bring Solar Energy and Digital Devices to Africa
Founded in 2018 in Malawi, Yellow initially focused on providing solar energy to a country with limited electricity access. It has since expanded across Africa and expanded its product range to include smartphones.
Expansion Plans and Financial Products
With the latest funding, Yellow aims to deepen its presence in current markets (Malawi, Rwanda, Uganda, Zambia, and Madagascar), launch digital and financial products, and prepare for future debt funding rounds to fuel further growth. The total funding raised by Yellow now stands at $45 million.
Yellow’s Impressive Growth and Market Penetration
Yellow claims profitability and has achieved a compound annual growth rate (CAGR) of 265% over the past four years. Its network of 1100 agents and the Ofeefee app have helped the company reach over 400,000 customers across its five markets.
Product Offerings and PayGo Model
Yellow’s popular products include small and large solar home systems, along with smartphones. Customers pay a deposit and remit the balance through monthly payments spread over six or 24 months, using the pay-go model.
Yellow’s Role in Expanding Access to Green Energy
Yellow’s success reflects the growing interest in off-grid solar startups and the increasing accessibility of solar energy in Africa. Such asset financiers contribute to financial inclusion, green energy distribution, and broadband penetration in underserved communities while generating investment returns.