According to a report by Tech Cabal, Hohm Energya South African solar company is currently out of business due to cash flow problems.
Details
According to the report, Hohm Energy has currently exercised a “business rescue» in South Africa, a process to help companies in financial crisis.
The business rescue process lasts three months, during which time the company’s business affairs will be investigated and a meeting with creditors will be convened for further steps.
Hohm Energy has reportedly fired several employees and its CEO Tim Olsen left the company.
What They Say
“We are working with legal counsel to better understand a path forward, but Hohm is currently not tradingFranc Gray, CEO of Hohm’s parent company, Spark Energy Services, told TechCabal.
Flashback
In February of this year, Hohm Energy announced an $8 million seed round. The company’s main product was a solar marketplace that allowed customers to digitally specify their solar energy requirements and access loans for rooftop solar installation.
The company stated that it had created over 17,000 custom solar roof designs using the solar suggestion engine worth $190 millionorigin over $90 million in funding applications to its retail banking partners.
Between the Lines
South Africa has been in the grip of escalating power shortages, resorting to daily power distribution to prevent a nationwide grid collapse.
Eskomthe state-owned power company, has acknowledged a staggering power shortfall over 6,000 megawatts at times.
However, South Africa’s grid issues have improved in recent months, leading to problems for Hohm Energy as demand for solar power has declined.
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