Hohm Energy, a South African solar energy firm, has secured $8 million in a seed funding round to expand its rooftop solar installation product.
The round of funding which is the largest ever seed round raised by a tech startup from South Africa was led by E3 Capital and 4DX Ventures.
According to co-founder Tim Ohlsen l, there is a significant demand for solar energy in South Africa. However, raising finance can often pose a problem. Introducing a Fintech solution could help promote more rooftop solar installations.
Established in 2021 by founders Tim Ohlsen and Emir Gluhbegovic, Hohm Energy offers two distinct services: a digital method for customers to ascertain their properties’ solar energy requirements and an opportunity to avail credit financing for rooftop solar installations. In addition, the platform offers solar installers the ability to design, manage, finance and source solar projects.
Since its launch,Hohm Energy claims that they have created over 17,000 tailor-made solar rooftop designs, collectively valued at $190 million, and have received $90 million in financing applications intended for the designs’ implementation.
The company has collaborated with multiple South African financial institutions, enabling customers to obtain structured financing.
Customers of Hohm Energy can use its integrated finance and credit scoring system to apply for funding.
The $8 million seed fund will be used to expand the company’s product range across the board. This expansion will encompass technological enhancement, product innovation, and the development of solar installer skills.
The company aims to facilitate rooftop solar installations for 7.7 million homes in South Africa With a target to reach to reach profitability by the end of the year.
