Husk Power raises $103 Million to expand renewable energy in Africa and Asia

Husk Power Systems, a cleantech startup operating in Africa and Asia has successfully raised $103 million in its Series D funding round, comprising $43 million in equity and $60 million in debt financing. The investment marks the largest equity raise of its kind in the mini-grid industry. Husk Power Systems, which has been actively involved in rural electrification since its inception in 2008, is renowned for its innovative solutions in renewable energy services.

The Series D equity investors include prominent names like STOA Infra & Energy, the US International Development Finance Corporation (DFC), Proparco, Shell Ventures, Swedfund, and FMO. Concurrently, the debt financing was secured from financial institutions such as the European Investment Bank (EIB) and the International Finance Corporation (IFC).

Husk Power Systems, known for its AI-enabled platform for renewable energy services, sees this substantial funding as a testament to its leadership role in providing clean energy to rural communities in South Asia and sub-Saharan Africa. The mini-grid systems it offers have the potential to provide access to reliable, affordable, clean, and modern power to a vast number of people, particularly in regions with limited access to electricity.

Over the years, Husk Power Systems has expanded beyond energy access, branching into the transition from fossil fuels to renewables. It has evolved into an integrated platform offering a wide range of low-carbon and climate-resilient energy services. These services include energy-efficient appliance sales and financing, commercial and industrial rooftop solar, e-mobility, agro-processing, and cold storage solutions.

One of the cleantech's significant initiatives is to deploy 500 solar mini-grids in Nigeria within the next five years. To date, it has already deployed over 200 mini-grids in Nigeria and India. The company claims to have served over 10,000 micro, small, and medium-sized enterprises (MSMEs), mitigating 25,000 tonnes of carbon dioxide emissions through its mini-grids.

With the freshly acquired capital, Husk Power Systems has ambitious plans for further expansion. The company intends to grow its mini-grid footprint to 1,500 units, achieving a remarkable compound annual growth rate (CAGR) of 60% and maintaining a retention rate of over 90%. The funding will also support an increase in the number of mini-grids in sub-Saharan Africa, bringing it in line with the deployment in India.

In the quest to reach half a billion people with clean energy by 2030, particularly in Africa, Husk Power Systems has pledged to be a pivotal player. The company recently unveiled its "Africa Sunshot" initiative, which aims to install 2,500 mini-grids across six countries within five years. This initiative could mobilize over $500 million in equity and debt financing for Husk Power Systems, raising the potential for significant growth.

With the funding secured in its Series D round, Husk Power Systems is well-positioned to make a substantial impact on rural electrification in regions with limited access to clean and affordable energy. The company's innovative approach, which incorporates AI and IoT technologies, is poised to revolutionize the renewable energy landscape and bring sustainable power to those living without it.