Earthbond, a Nigerian startup that facilitates connections between small businesses in need of solar solutions and providers, has successfully secured $200,000 in pre-seed funding from Madica, an Africa-focused early-stage investment firm.
With this new injection of capital, Earthbond plans to expand its reach and onboard more small and medium businesses (SMBs) looking to transition to solar energy. The startup has already assessed the solar power needs of over 100 businesses in Lagos, with potential deals totaling up to $1 million. Additionally, more than 1,800 SMBs have joined Earthbond’s waitlist, underscoring the growing demand for energy transition amidst a 40% increase in fuel prices in September.
Founded in 2023 by Chidalu Onyenso, Earthbond offers assistance to businesses in determining their solar power requirements and provides financing options to facilitate the transition to solar energy. By connecting businesses with solar solution providers, including solar panel installers and loan providers, Earthbond simplifies the process for business owners. Interested parties can fill out a form on the startup’s website, providing details about their registered businesses and operating hours.
Earthbond has also established partnerships with four microfinance banks to offer businesses flexible repayment plans of up to 48 months. This initiative aims to alleviate the financial burden faced by small businesses in Nigeria, which often struggle with unreliable power supply and high costs associated with running diesel and petrol generators. While solar power presents a cleaner energy alternative, the steep installation costs have hindered widespread adoption. Earthbond’s financing options seek to support business owners keen on transitioning to clean energy without straining their finances.
In addition to its core offerings, Earthbond has plans to venture into the climate tech industry by helping businesses track their carbon emissions and providing discounts based on the amount of carbon saved. This innovative approach aims to incentivize businesses to choose Earthbond as their service provider. The startup is determined to make a mark in Nigeria’s renewable energy market, competing with industry players like Rensource Energy, M-KOPA, and Arnegy to increase the country’s installed solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029.
Madica, the investment firm backing Earthbond, will provide a structured program to support the startup in enhancing its marketing efforts, expanding its customer base, collaborating with additional banks to offer loans, and developing payment tools for its clients. Emmanuel Adegboye, head of Madica, expressed confidence in Earthbond’s potential to drive a cleaner energy future and positively impact Africa, emphasizing the firm’s commitment to supporting underrepresented founders.
Overall, Earthbond’s recent funding success and strategic partnerships position the startup as a key player in Nigeria’s transition to renewable energy sources. By empowering small businesses to make the switch to solar power, Earthbond is not only driving economic growth but also contributing to a more sustainable future for the region.
