Yellow, a Malawian off-grid solar company, has received a $4 million loan from SunFunder, a company that finances solar energy projects all over the world.
The funding will help the company expand its solar home system sales.
Yellow has enhanced energy availability for over 400,000 people while also reducing CO2 emissions by 12,000 tons per year by replacing kerosene with clean solar illumination and other devices. In addition, the company has created approximately 800 jobs in the area.
Yellow, like many other companies who sell solar home systems in off-grid locations, gives their customers credit by selling them on a pay-as-you-go (PAYGO) basis.
Despite being a rookie, the company has built a strong credit operation through automation and training.
SunFunder Investment Officer Collins Kuindwa remarked, “Yellow has quickly established itself as a leading off-grid solar provider.”
“We are especially excited to be kicking off this new cooperation after staying in touch since their early days — SunFunder’s own path helping to create the off-grid solar market includes supporting new players as a trusted advisor and partner rather than just a lender.
“We met founder Mike Heyink and his crew a few years ago when they were a startup with only a few hundred consumers. We followed their growth from a small company learning from mistakes to a large company creating industry best practices. Working together to drive Yellow’s growth is an exciting moment.
“The ambition to electrify millions of African households through the efficient distribution of PAYGO solar home systems represents a tremendous commercial, social, and environmental opportunity.
“We are ecstatic to have a market leader like SunFunder support Yellow’s business strategy and offer the funding we need to keep growing.” Yellow’s creator and CEO, Mike Heyink, stated.