Zola Electric, a firm based in Africa that aims to solve energy access issues, has raised $90 million in fresh funding to expand its distributed renewable energy services and enter new markets.
Erica Mackey, Xavier Helgesen, and Joshua Pierce founded Zola Electric a decade ago. The company began by offering solar housing solutions to Tanzania’s off-grid rural market. Over time, new lines have been added. It launched a product last year that can power appliances by syncing with any energy source, including the grid, solar, and batteries. Along with this product, it also offers software-as-a-service (SaaS).
The money is split half-and-half between equity and debt. TotalEnergies Ventures, DBL Partners, Helios Investment Partners, Paul Allen’s Vulcan Capital, Lyndon and Pete Rive, and Electron Capital Partners, a US-based utility-focused hedge fund, led the equity side of the round.
FMO and SunFunder, two Dutch development financiers, provided the debt financing.The development comes three years after the company raised $55 million in a Series D round of funding. Subsequent VC rounds are usually larger, although it’s unclear whether the new fundraising is Series E or a bridge round, and whether a down round is involved. The company has raised more than $230 million in debt and equity funding during the last decade.
Ivory Coast, Ghana, Namibia, DRC, South Africa, Zambia, and Nigeria have all been served by the corporation in Africa. It has already established markets in the United States, Brazil, Pakistan, and the Philippines. Northern Africa, Asia, and South America are among the countries to be added.