Earthbond, a Nigerian startup that facilitates connections between small businesses seeking solar solutions and providers, has successfully raised $200,000 in pre-seed funding from Madica, an investment firm focused on early-stage ventures in Africa.
This investment will allow Earthbond to onboard additional small and medium-sized enterprises (SMBs). The startup has reportedly assessed the solar energy needs of over 100 businesses in Lagos, with potential contracts valued at up to $1 million. Furthermore, more than 1,800 SMBs are currently on Earthbond’s waitlist, demonstrating a strong demand for energy solutions, especially following a 40% increase in fuel prices in September.
Founded in 2023 by Chidalu Onyenso, Earthbond helps businesses identify their solar power needs and offers financing options for transitioning to solar energy. The startup connects these businesses with providers of solar solutions, including installers and loan service providers. Business owners can easily sign up by filling out a form on the company’s website with information about their registered businesses and operating hours.
Earthbond has partnered with four microfinance banks to provide flexible repayment plans for businesses, extending up to 48 months.
Small businesses are crucial to Nigeria’s economy, but they often struggle with an unreliable power supply and the high costs of operating diesel and petrol generators. While solar energy offers a cleaner alternative, the high installation costs have deterred many from making the switch. Earthbond’s financing options aim to help business owners embrace clean energy without financial strain.
“Leading the energy transition is a significant challenge, and we are thrilled to have prominent investors who share our commitment,” said Chidalu Onyenso, CEO of Earthbond.
The startup also plans to enter the climate tech sector by helping businesses monitor their carbon emissions and providing discounts based on their carbon savings. This strategy will encourage businesses to choose their service provider. Earthbond seeks to make its mark in Nigeria’s renewable energy market, competing with companies like Rensource Energy, M-KOPA, and Arnegy, with the goal of increasing Nigeria’s installed solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029.
Madica will implement a structured program to help Earthbond enhance its marketing efforts, onboard more businesses, facilitate loans in collaboration with additional banks, and develop payment solutions for its clients.
“Earthbond has significant potential to foster an equitable clean energy future and make a positive impact on Africa. We are committed to supporting underrepresented founders,” stated Emmanuel Adegboye, head of Madica.
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