Earthbond, a Nigerian startup that connects small businesses that want to buy solar solutions to solution providers, has raised a $200,000 pre-seed funding from Madica, an Africa-focused early-stage investment firm.
This funding will help Earthbond onboard more small and medium businesses (SMBs), the company said in a statement. The startup claims it has audited the solar power needs of over 100 businesses in Lagos in deals that could be worth $1 million. Over 1,800 SMBs have joined Earthbond’s waitlist, showing demand for energy transition as fuel prices rose 40% in September.
Founded in 2023 by Chidalu Onyenso, Earthbond helps businesses determine how much solar power they need and provides financing options to go solar. It connects these businesses with solar solution providers, such as solar panel installers, loan providers, and available loan payment options. Business owners only need to fill in details of their registered businesses and operating hours on a form on the startup’s website.
Earthbond claims it has partnered with four microfinance banks to provide businesses with flexible repayment plans of up to 48 months.
Small businesses are the backbone of Nigeria’s economy, but they are heavily burdened by unreliable power supply and the high costs of running diesel and petrol generators. While solar power offers cleaner energy solutions, the high installation costs have deterred many businesses from adopting it. Earthbond’s financing option will be useful for business owners keen to adopt clean energy without pressuring their pockets.
“Leading the charge of energy transition is no easy feat and we are glad to be joined by renowned investors who share our passion and drive,” said Chidalu Onyenso, Earthbond’s CEO.
The startup also plans to tap into the climate tech industry by helping businesses track their carbon emissions, offering them discounts based on how much carbon they save. This will incentivise businesses to choose the provider. Earthbond will enter Nigeria’s renewable energy market, joining players like Rensource Energy, M-KOPA and Arnegy in the race to boost Nigeria’s installed solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029.
Madica will provide a structured program to help Earthbond revamp its marketing, onboard more businesses, provide loans in partnership with more banks, and build payment tools for its customers.
“Earthbond has tremendous potential to drive an equitable clean energy future and positively impact Africa. We remain devoted in our quest to support underrepresented founders,” said Emmanuel Adegboye, head of Madica.
