Sun Exchange, a peer-to-peer solar leasing platform located in Southern Africa, has raised an additional US$2.5 million in funding through a convertible note investment from an existing investor to help it scale faster.
Sun Exchange, which launched in 2015, allows anyone from anywhere in the world to buy solar cells that power schools, businesses, and other organizations.
Since then, the startup has grown to thousands of members in hundreds of countries, and has installed solar power in dozens of South African schools, businesses, and organizations. Following a US$4 million Series A investment last year, it began expanding overseas and has recently raised more funds.
Sun Exchange has raised US$2.5 million in convertible note funding from ARPF, a Mauritian private equity fund advised by London-based ARCH Emerging Markets Partners, which was the startup’s Series A lead investor.
Sun Exchange will be able to continue increasing its success by facilitating solar power for small-to-medium businesses in Sub-Saharan Africa, the segment most impacted by escalating energy costs, poor grid infrastructure, and costly backup diesel generators, thanks to the latest investment.
“Addressing the climate emergency is the top priority on the world’s agenda, as evidenced by last week’s conversations at the UN General Assembly leading up to COP26. While policy action and diplomacy are critical at this juncture, the private sector and individuals have a crucial role to play. Powered by our global community, Sun Exchange closes the solar finance gap for organisations in Africa, addressing the challenge of our lifetime while supporting sustainable economic growth. We are delighted that ARCH has reaffirmed its belief in Sun Exchange and our mission through this investment,” said Abraham Cambridge, founder and chief executive officer (CEO) of Sun Exchange.
Sun Exchange has maintained its pace as a fast-emerging leader in removing barriers to solar proliferation in Africa, according to William Barry, managing director of ARCH.
“ARCH is committed to working with our portfolio companies and supporting their growth, and we are proud to continue partnering with Sun Exchange on its journey to accelerate the global energy transition,” he said.