Yellow, a Malawian off-grid solar provider, has secured a $4 million debt facility from SunFunder, a firm that provides finance for solar energy projects across the world.
The loan will support the company’s growing sales of solar home systems.
With over 110,000 units sold, Yellow has improved energy access for more than 400,000 people, mitigating 12,000 tons of CO2 emissions per year as they replace kerosene with clean solar lighting and other devices. The company has also created over 800 local jobs.
Like many businesses distributing solar home systems in off-grid areas, Yellow offers their customers credit by selling their products on a pay-as-you-go (PAYGO) basis.
Despite being a relative newcomer, the company has instilled a highly impressive credit operation, through automation and training.
“Yellow has quickly established itself as a leading off-grid solar operator,” said Collins Kuindwa, Investment Officer at SunFunder.
“We are particularly pleased to be starting this new partnership having stayed in contact since their early days – supporting new players, as a trusted advisor and partner rather than just financier, is built into SunFunder’s own journey helping to establish the off-grid solar sector.
“When we first met founder Mike Heyink and team a few years ago, they were a startup with barely 100 customers. We tracked their progress from a young company studying lessons learned to a growing company that is establishing best practices for the industry. It is an exciting time to work together and accelerate Yellow’s growth.
“The mission to electrify millions of households in Africa through the efficient distribution of PAYGO solar home systems is an incredible commercial, social and environmental opportunity.
“We are thrilled to have a leader in the field like SunFunder endorse Yellow’s business model, and provide the finance to enable our continued expansion.” said Mike Heyink, Yellow’s founder and CEO.
