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Earthbond Secures Funding to Provide Affordable Solar Energy

October 22, 2024

Nigerian climate tech startup, Earthbond secures funding to provide affordable solar energy solutions to small and medium-sized enterprises (SMEs). They secured an investment from Madica, an Africa-focused pre-seed investment program.

Earthbond simplifies access to reliable clean energy through its integrated marketplace, connecting businesses to solar finance and certified installers.

This investment will enable the cleantech startup to scale its operations and enhance its offerings, further bridging the clean energy gap for Nigerian SMEs.

Earthbond plans to enable $10 million in targeted loans over the next three years, expand sales and marketing efforts, and introduce new maintenance and payment tools to improve customer experience.

Additionally, the startup aims to offer carbon credit discounts, creating a different revenue stream and incentivising businesses to adopt solar power.

The cleantech startup, founded in 2023 by Chidalu Onyenso, an MBA graduate from Harvard and seasoned product manager, is addressing Nigeria’s $14 billion off-grid generator market, which burdens SMEs with high costs and carbon emissions.

Madica’s Head, Emmanuel Adegboye, expressed confidence in Earthbond’s potential, stating, “Earthbond is tackling critical climate challenges with innovative solutions. We believe this investment will significantly impact Africa’s clean energy future.”

This investment aligns with Madica’s mission to support underrepresented founders and empower innovative African startups.

Launched in 2022

Launched in 2022, Madica is affiliated with Flourish Ventures — a global fintech venture capital (VC) firm — and provides investment of up to $200,000 for early-stage startups across Africa.

The program offers 18 months of dedicated support, including mentorship, a tailored startup curriculum, immersion trips, and access to a global network of investors for follow-on funding.

In April 2024, Techpoint Africa reported that Madica, in its first African investments, gave $200,000 each to three African startups: Kola Market, GoBEBA, and NewForm Foods.

By partnering with Madica, Earthbond will gain significant resources to boost its growth and long-term viability.

With frequent grid failures forcing companies to rely on generators — which the company says cost businesses over $29 billion annually — Earthbond offers a sustainable and cost-effective alternative through solar power.

However, high upfront installation costs have deterred many SMEs from adopting solar energy. The platform provides embedded solar finance, allowing SMEs to spread out installation costs while accessing a marketplace of vetted solar suppliers.

The startup claims it has already audited over 100 customers in Lagos, representing a potential $1 million in solar projects, and built partnerships with four banks to facilitate loans.

Per the company, more than 1,800 SMEs have indicated interest in joining its waitlist, demonstrating strong demand for affordable solar solutions.

Onyenso, Earthbond’s Founder and CEO, noted that the investment is a “pivotal moment for Earthbond, and we’re excited to join the Madica family. With this support, we’re ready to lead the energy transition for Nigeria’s SMEs.”

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