A startup in Nigeria called Earthbond has secured a pre-seed funding of $200,000 from Madica, an investment firm focusing on Africa.
This financial boost will enable Earthbond to bring more small and medium businesses (SMBs) on board, as stated by the company. Earthbond has assessed the solar power requirements of over 100 businesses in Lagos with potential deals valued at $1 million. The startup’s waitlist has over 1,800 SMBs, indicating a growing interest in transitioning to cleaner energy sources amidst a 40% rise in fuel prices in September.
Established in 2023 by Chidalu Onyenso, Earthbond assists businesses in determining their solar power needs and offers financing solutions for adopting solar energy. It connects these businesses with solar solution providers, including solar panel installers, loan providers, and various loan payment options. Business owners can simply provide details about their registered businesses and operational hours through a form on the startup’s website.
Earthbond has formed partnerships with four microfinance banks to offer businesses flexible repayment plans spanning up to 48 months.
Small businesses play a crucial role in Nigeria’s economy, yet they face challenges due to unreliable power supply and high expenses associated with running generators. While solar power presents a cleaner energy alternative, the initial installation costs have deterred many businesses. Earthbond’s financing options aim to support business owners looking to embrace clean energy without straining their finances.
Chidalu Onyenso, CEO of Earthbond, expressed enthusiasm about leading the energy transition and welcomed the support from esteemed investors who share their vision.
Additionally, Earthbond plans to venture into the climate tech sector by assisting businesses in monitoring their carbon emissions and offering discounts based on their carbon-saving efforts. This strategy aims to incentivize businesses to choose Earthbond as their provider. The startup aims to enter Nigeria’s renewable energy market, competing with industry players to increase the country’s solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029.
Madica will provide a structured program to assist Earthbond in enhancing its marketing strategies, expanding its business network, collaborating with more banks for loan provisions, and developing payment tools for customers.
Emmanuel Adegboye, head of Madica, expressed commitment to supporting underrepresented founders and highlighted Earthbond’s potential to drive a sustainable clean energy future in Africa.