South Africa-based renewable resource startup Sun Exchange has actually raised $3 million to close its Series A financing round amounting to $4 million.
The business operates a peer-to-peer, crypto-enabled company that permits individuals throughout the world to buy solar facilities in Africa.
How’s that all work?
“You as a person are selling electrical energy to a school in South Africa, through a photovoltaic panel you bought through the Sun Exchange,” explained Abe Cambridge, the start-up’s founder and CEO.
“Our platform meters the electrical energy production of your solar panel. Arranges for the buying of that electrical energy with your picked energy customer, gathers that cash and after that returns it to your Sun Exchange wallet.”
It costs roughly $5 a solar battery to get in and transactions take place in South African Rand or Bitcoin.
“The reason we picked Bitcoin is we required one universal payment system that allows micro deals to a millionth of a U.S. cent,” Cambridge informed TechCrunch on a call.
He co-founded the Cape Town-headquartered startup in 2015 to advance renewable resource infrastructure in Africa. “I realized the chance for solar was huge, not simply for South Africa, however for the entire of the African continent,” said Cambridge.
“What was required was a new system to get Africa solar powered.”
Sub-Saharan Africa has a population of roughly 1 billion individuals across an enormous landmass and just about half of that population has access to electrical energy, according to the International Energy Agency.
Recently, Sun Exchange’s main market South Africa– which boasts a few of the very best infrastructure in the area– has actually suffered from blackouts and power blackouts.
Image Credits: Sun Exchange Sun Exchange has members in 162 countries who have bought solar power projects for schools, businesses and organizations throughout South Africa, according to business information. The$3 million– which closed Sun Exchange’s$4 million Series
A– came from the Africa Renewable Power Fund of London’s ARCH Emerging Markets Partners. With the capital, the startup prepares to enter brand-new markets. “We’re going to expand into other Sub-Saharan African countries. We’ve got some clear opportunities on our roadmap,” Cambridge said, referencing Nigeria as one of the markets Sun Exchange has looked into.
There are numerous well-funded solar energy start-ups operating in Africa’s leading economic and tech hubs, such as Kenya and Nigeria. In East Africa, M-Kopa offers solar hardware packages to households on credit, then permits installation payments through smart phone using M-Pesa mobile cash. The venture is backed by $161 million from investors consisting of Steve Case and Richard Branson.
In Nigeria, Rensource shifted from a domestic hardware design to constructing solar-powered micro energies for big markets and other industrial structures.
Sun Exchange runs as an asset complimentary design and runs differently than companies that set up or manufacture photovoltaic panels.
“We’re completely supplier agnostic. We are approached by solar installers who run on the African continent. And after that we partner with the very best ones,” stated Cambridge– who provided the start-up’s model at TechCrunch Startup Battlefield in Berlin in 2017.
“We’re the market that connects together the user of the photovoltaic panel to the owner of the photovoltaic panel to the installer of the photovoltaic panel.”
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https://techcrunch.com/wp-content/uploads/2020/06/27059766699_a581a8a514_o.jpg?resize=50,34 50w”sizes =”( max-width: 3000px) 100vw, 3000px “> Abe Cambridge, Image Credits: TechCrunch Sun Exchange produces earnings by making margins on sales of solar panels and costs on purchases and kilowatt hours produced, according to Cambridge.
In addition to expanding in Africa, the start-up aims to expand in the medium to long-term to Latin America and Southeast Asia.
“Those are also puts that would really take advantage of from solar power, from the speed in which it might be deployed and the ecological improvements that going solar result in,” said Cambridge.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.