based in Kenya SunCulturea solar irrigation startup, has raised $27 million from investors including Netflix co-founder Reed Hastings and Eric Schmidt, former CEO of Alphabet.
Others who also invested include; InfraCo Africa and Acumen Fund. Investors in previous funding rounds include; EDF International SAS, DPI Energy Ventures, Equator Africa Fund, and Energy Access Ventures Fund.
Details
The company supplies small solar-powered water pumps, the cost of which is subsidized by the sale carbon creditsto small-scale farmers, allowing them to replace diesel-powered pumps in some cases and increase yields in previously non-irrigated fields.
SunCulture operates in Kenya, Uganda, and Ivory Coast and has distribution agreements in Ethiopia, Zambia, and To go.
Because this matters
The startup estimates that its 700 million Africans who live on smallholder farms, only 4% have access to irrigation; meaning they have significantly lower yields and are vulnerable to dry weather.
What they say
โWe are the largest smallholder solar irrigation company in Africa. We use financial services and carbon revenue to make solar irrigation cost 50 percent cheaper than diesel and gasoline pumps,” he said Samir Ibrahim, CEO of SunCulture.
“Irrigation is just like the old very unsexy technology, but it could increase your yields by up to five times.”
“SunCulture helps farmers grow more food, which is exactly the kind of business that thrivesยป, Reed Hastingssaid the Netflix co-founder.
By The Numbers
The Series B funding round brings to 65 million dollars the company has increased till date and is progressing to some extent towards the increase target $219 million to install its 274,000 systems only in Kenya. That funding will come from equity, debt, grants and carbon financing, according to SunCulture.
The company has sold 47,000 units, powered by solar panels that can be placed in small buildings or sheds and in some cases batteries. They use just 310 watts of power, which is equivalent to that required for about five standard-sized incandescent bulbs.
What happens next?
The company also plans to expand across the continent with pilots currently running in various countries. It is also looking to branch out into facilitating the provision of other agricultural services such as soil testing and insurance.
Source: Bloomberg
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