Across Africa, small and medium businesses (SMBs) already grappling with unreliable electricity infrastructure face deepening energy access challenges due to climate change. In Nigeria, businesses face an unstable electrical supply, with the nation's grid collapsing 46 times from 2017 to 2023. This forces them to rely on expensive and dirty fossil-fuel-powered generators. This costs Nigerian businesses over $29 billion annually.
As climate impacts intensify, the need for affordable, reliable, and clean energy solutions for SMBs will grow. Earthbond meets this need by offering a clean energy marketplace matching SMBs with financing for solar assets and installation providers tailored to their budgets and energy needs. Their platform makes solar energy financing accessible to overlooked SMBs via partnerships with banks, micro-lenders, and solar companies.
Here’s why we invested in Earthbond:
Distributed renewable energy solutions are critical for enabling African SMBs to adapt to intensifying climate change impacts. However, high upfront costs make rooftop solar and battery solutions unaffordable for most. This leaves SMBs reliant on unreliable grids and dirty fossil-fueled backup generators.
Earthbond unlocks affordable, reliable solar energy for overlooked Nigerian SMBs via their integrated clean energy marketplace. Their platform matches shops and processors with customized loans, installers, and solar solutions - making the transition from expensive fossil-reliant generators financially viable.
In just five months of piloting their model, Earthbond is already enabling SMBs to transition from fossil-fuel reliance towards solar resilience. Having demonstrated product-market fit, they now aim to finance solar solutions for over 1500 SMBs in their first full year of operations.
Beyond facilitating clean energy access, Earthbond also provides crucial customer education on optimal solar system sizing and usage - overcoming an industry-wide gap that limits impact. Their self-assessing model has already helped qualify and audit over 400 SMBs.
By sustainably transitioning small businesses onto affordable clean energy, Earthbond drives climate adaptation, cost savings, income growth, and carbon reduction for overlooked groups facing interconnected energy poverty and climate threats.
Earthbond’s innovation lies in building an integrated SMB solar marketplace - seamlessly connecting users with inclusive financing, installation, and after-sales service.
Via their online platform, SMBs share energy and financial data to access customized solar financing plans from an ecosystem of providers. Cash flow friendly loans remove the greatest adoption barrier.
Approved SMBs then select their preferred solar panels, batteries, and accessories from trusted equipment suppliers on the platform. Earthbond manages end-to-end delivery, installation, and after-sales - establishing reliability.
This interconnected clean energy marketplace simplifies the fragmented Nigerian solar industry for SMBs. Enabling easy, affordable, and reliable access to solar power that enhances incomes and resilience. We couldn’t be more excited to back this platform, building solar infrastructure for African small businesses' prosperity and climate adaptation.
Earthbond currently operates in Nigeria, where 84% of jobs are created by 36 million SMBs, generating 48% of GDP and making up 96% of all businesses in the country. Businesses in Nigeria collectively spend $29 billion annually powering diesel generators. With immense market opportunity, strict diesel emission regulations underway, and decreasing solar costs, Earthbond is poised for breakout growth.
Our collaboration will support Earthbond's expansion across Nigeria by facilitating connections to aligned solar partners, fintechs and investors. This will expand the startup's financing capacity and geographic reach and ultimately, its mission of powering 1 million solar SMBs profitably and sustainably.
Earthbond's founding team combines solar energy, finance, and emerging market expertise with boundless drive. Since launching in 2023, they have already enabled over 20-megawatt hours of renewable energy for Nigerian SMBs, built a 1500-user waitlist, and signed and executed financing partnerships with multiple major Nigerian banks.
We can’t wait to combine our venture-building support with their grit to make Earthbond Nigeria’s preferred B2B solar marketplace - driving widespread climate adaptation, digital connectivity, and inclusive growth.
Read more from our team at Catalyst Fund
