S’pore-based SolarHome Raises $1.2 mn in Convertible Note Offering

The company to use funds to expand into dry zone in Myanmar and build out credit risk management function.

A Singapore-based start-up, SolarHome, that provide Pay-As-You-Go (PAYG) solar off-grid solutions, has raised another USD 1.2 million in growth capital through an issue of convertible notes to a consortium of investors.

The company to use funds to expand into dry zone in Myanmar and build out credit risk management function.

SolarHome has raised over USD 2.3 million in funding to date, having secured its seed capital from FORUM, the largest fintech venture builder in Emerging Asia.

The investors who participated in the consortium include, Singapore-based venture capital firm Beenext, an impact-oriented family office; X Capital Ventures, an investment group focused on seed to Series B ventures; and distinguished Singaporean angel investor, Koh Boon Hwee, whose deep expertise and leadership spans across the technology, consumer, and investment sectors.

After participating in SolarHome’s pre-series A equity round in October last year, Beenext, Managing Director, Dirk Van Quaquebeke said, “We are thrilled to continue to back SolarHome. Myanmar is an exciting market for us and SolarHome is in a unique position to capitalise on the massive opportunity set in a country that sits at the intersection of microfinance and energy access.”

“The company has scaled very quickly despite operating in a country with significant infrastructural challenges and we believe there is substantial room for technology to drive further efficiency and scale in the business,” Quaquebeke added.

As per the World Bank in ‘Off-Grid Solar Market Trends Report 2018’, the global PAYG solar industry has attracted over USD 773 million in funding over the last 5 years. The estimated impact of these investments has been far reaching, with approximately USD 5.2 billion in economic savings to households as they switch from kerosene and other conventional fuels to off-grid solar devices including PAYG solar.

Commenting on the investment, SolarHome, Chief Executive Officer and Co-founder, Ted Martynov said, “We are very pleased to have a group of reputable and specialised investors come on board this round. As pioneers of the pay-as-you-go model in Southeast Asia, we are eager to draw upon the expertise of our investor base to incorporate best practices in retail, consumer finance and technology that best serve our unique business model.”

“We have a large target market of 8 million households in Myanmar alone, and we are confident this round of capital will enable us to stay on course to bring affordable renewable energy to over 40,000 households by end 2018,” Ted added.

Source: AsiaOne