Yellow, a leading provider of affordable and reliable energy, as well as internet connectivity access for consumers in Africa, announced today the successful first close of its Series B equity round.
Yellow is proud to be partnering with Energy Entrepreneurs Growth Fund (“EEGF”), represented by Triple Jump B.V. (“TJ”), in this next phase of growth for its business. The company’s unique technology-enabled and system-driven approach allows some of the hardest-to-reach customers in the world to access electricity and the internet for the very first time.
Over the past five years, Yellow has achieved remarkable revenue growth of over 250% CAGR and has served over 360,000 customers in Malawi, Rwanda, Uganda, Zambia, and Madagascar. Yellow’s impressive metrics bear testimony to the impact of its work. Through its solar products, the company has enabled the reduction of over 500,000 metric tons of CO2e emissions and is now seeing strong traction in smartphone finance.
The capital raised through this equity round will enable Yellow to continue executing 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. The investment by EEGF demonstrates 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.
“We are excited to have the support of EEGF,” said Michael Heyink, founder and CEO of Yellow. “The investment represents a successful first close of our Series B equity round, and is a strong vote of confidence in 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.”
Mark van Doesburgh, Deputy Head, Direct Investments team of Triple Jump, said: “We are excited to continue partnering with Yellow to support its growth as it expands renewable energy access in East and Southern Africa. This investment aligns with our commitment to investing in innovative solutions that address critical global challenges, and we believe that Yellow has the potential to make a real difference in people’s lives. Recent market shocks such as COVID-19 and the increases in food and energy prices are hitting the world’s poorest the hardest. Providing access to clean, affordable and reliable energy is one improvement we can make to people’s lives.”
EEGF is designed to provide patient, flexible capital combined with technical assistance that is currently lacking in the off-grid energy ecosystem. It 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, EEGF provides a longer investment holding and support period, recognizing the inherent need for such businesses in emerging economies to unlock value creation to their stakeholders. EEGF has already invested in 10 businesses, using bespoke capital solutions to meet these enterprises’ specific needs. The fund ultimately aims to reach in excess of 5 million beneficiaries, including over 240 female-led businesses, thus avoiding 4.5 million tons of greenhouse gas emissions.”