reed hastings Netflix co-founder Eric Schmidt and former Google CEO Eric Schmidt have participated in a funding round for an African solar irrigation startup through their foundation.
The two billionaires are among the investors who invested US$27 million in Nairobi-based SunCulture, along with other companies including Infraco Africa and Acumen Fund, the company said.
The company supplies small, solar-powered water pumps, the cost of which is subsidized by the sale of carbon credits, that small farmers can use to replace diesel-powered pumps in some cases, and which have traditionally been irrigated. It is possible to increase the yield of fields that were previously undeveloped. .
SunCulture operates in Kenya, Uganda and Ivory Coast and has distribution agreements in Ethiopia, Zambia and Togo.
“SunCulture helps farmers grow more food, and that's exactly the type of business that thrives,” Hastings said in comments provided by the irrigation company.
The startup estimates that only 4% of the 700 million Africans living on small farms have access to irrigation, meaning they have significantly lower yields and are more vulnerable to dry climates. are doing.
The company has sold 47,000 units equipped with solar panels and, in some cases, batteries that can be attached to small buildings or sheds. The power consumption is only 310W, which is equivalent to about 5 standard size incandescent light bulbs.
“We are Africa's largest smallholder solar irrigation company. We use financial services and carbon revenue to make solar irrigation 50% cheaper than diesel or petrol at the pump.” SunCulture said Samir Ibrahim, CEO. “Irrigation is an old and very unattractive technology, but it has the potential to increase yields by up to five times.”
expansion of africa
With the Series B funding round, the company has raised $65 million to date and takes some progress towards its goal of raising $219 million to install 274,000 systems in Kenya alone. . SunCulture says the funding will come from equity, debt, grants and carbon financing.
The company is also currently being piloted in a number of countries and has plans to expand across the continent, Ibrahim said. He is also looking to expand into promoting the provision of other agricultural services, such as soil testing and insurance.
Investors in previous funding rounds included EDF International, DPI Energy Ventures, Equator Africa Fund and Energy Access Ventures Fund. London-based EKTA Partners advised on the Series B round. — Report by Thomas Hall, (c) 2024 Bloomberg LP