Global fund Acumen and Novastar Ventures have made a €2 million (Sh226 million) equity investment in SolarNow, a Uganda-based company that sells home solar systems to customers in rural areas.
The investment will allow the Kampala firm to expand business to reach three million customers in the next four years.
“SolarNow’s innovative solution coupled with accessible asset finance aligns well with Acumen’s mission of changing the way the world tackles poverty by making critical goods and services accessible to underserved low income communities,” said Acumen East Africa director Duncan Onyango.
Expand to Kenya
The solar company plans to expand to Kenya and Tanzania.
The investment is the second for Acumen this year. In February, it bought a minority stake in Miliki Afya Limited, a clinic chain that serves the low-end market.
Acumen’s Sh52 million investment in Miliki Afya Limited will finance the healthcare chain’s five new branches in Nairobi.
In 2011, it invested $1.1 million in M-Kopa, a firm that distributes solar lamps that can be bought via mobile phone money transfer services.
Acumen had in 2008 invested $1.35 million in Insta, a firm that processes fortified porridge formula for infants. Source: Business Daily Africa