Husk Power Systems, the solar electric power generation company, has announced that it has closed $43 million in Series D funding, the largest-ever equity raise in the minigrid industry.
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.
In addition, Husk has 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).
Since raising $25 million in equity funding in 2018, Husk 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% despite two years of Covid, and maintained exceptional customer loyalty with a retention rate of more than 90%.
It also became the first minigrid company to become EBITDA positive in Q4 2022, and has built a team of more than 500 employees.
Over the next 5 years, the new funding will be used 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. Husk will also continue to build a world-class team and add 2,500 more employees, while expanding into new markets in Africa and Asia.
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.
Commented Manoj Sinha, Husk Co-Founder and CEO:“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.”
Referring to the financing, Jean-Pierre Barral, Deputy CEO, STOA Infra & Energy, said: “STOA is impressed by the track record and performance of Husk, which has resulted in a competitive energy solution that is affordable, reliable and clean. STOA is excited to lead this equity investment in Husk and support the growth of the minigrid industry, which is key to achieving universal energy access and a low carbon energy transition.”
Mateo Goldman, Acting Head, Office of Equity and Investment Funds, DFC, stated: “This is an important transaction that will strengthen energy security across Africa and Asia, which will bolster investment, increase economic opportunity, and improve livelihoods. This project will help meet the growing demand for clean, affordable, and reliable energy vital to creating stability and prosperity.”