Hohm Energy secures $8 million seed funding to address load shedding in South Africa

The South African solar energy firm, Hohm Energy, has successfully secured $8 million in a seed funding round to expand its rooftop solar installation product. This round of funding, led by E3 Capital and 4DX Ventures, is noted as the largest ever seed round raised by a tech startup from South Africa.

Hohm Energy was established in 2021 by founders Tim Ohlsen and Emir Gluhbegovic. The company’s platform offers two distinct services: a digital method for customers to ascertain their properties’ solar energy requirements and an opportunity to avail credit financing for rooftop solar installations. In addition, the platform offers solar installers the ability to design, manage, finance and source solar projects.

Hohm Energy suggests that they have created over 17,000 tailor-made solar rooftop designs, collectively valued at $190 million, and have received $90 million in financing applications intended for the designs’ implementation.

In order to provide finance for the designs, Hohm Energy has collaborated with multiple South African financial institutions, enabling customers to obtain structured financing.

Customers of Hohm Energy can use its integrated finance and credit scoring system to apply for funding. As Tim Ohlsen explained to TechCabal, there’s a significant demand for solar energy in South Africa. However, raising finance can often pose a problem. Introducing a Fintech solution could help promote more rooftop solar installations.

The $8 million seed fund will be utilized to expand Hohm Energy’s product range across the board. This expansion will encompass technological enhancement, product innovation, and the development of solar installer skills. The company has set their sights on facilitating rooftop solar installations for 7.7 million homes in South Africa. With this ambitious goal, Hohm Energy expects to reach profitability by the end of the year.