Husk Power, a net-zero energy company serving rural Asia and Africa, announced that it has raised $103 million in equity ($43 million) and debt ($60 million) to grow its fleet of solar minigrids. In fact, it raised $43 million in Series D funding and used the Series D equity to secure an additional $60 million in debt from several finance institutions, including the European Investment Bank (EIB), and the International Finance Corporation (IFC).
The equity financing attracted new backers such as STOA Infra & Energy, the US International Development Finance Corporation (DFC), and Proparco. It also includes continued support from prior investors like Shell Ventures, Swedfund, and FMO.
Founded in 2008, Husk Power System is the owner and operator of the largest fleet of community solar minigrids across Africa and Asia.
In the next five years, Husk plans to utilize the fresh funding to add over 1,400 new minigrids. This is expected to result in around 300,000 new connections, of which a third will be MSMEs, and will help avoid 350,000 tonnes of CO2 emissions. Moreover, Husk is committed to assembling a top-notch team by hiring an additional 2,500 staff and venturing into fresh markets across Africa and Asia.
The Africa Sunshot project, introduced by Husk at the Africa Climate Summit in September 2023, aims to secure a minimum of $500 million, enabling Husk to expand to 2,500 minigrids spread across 6 countries within the 5-year span. Notably, two-thirds of this newly procured finance will be channeled to Sub-Saharan Africa, signifying a pivotal move towards realizing the objectives of the Africa Sunshot initiative.
According to Manoj Sinha, Husk Co-Founder and CEO, “We have successfully created and scaled a rural energy platform that is life-changing for our communities from day one. We’re excited to put this new equity and debt to work to supercharge Husk’s growth and unlock the full economic and social potential for a generation of rural Africans and Asians, especially women and youth, that would otherwise be left behind.”
Referring to the financing, Jean-Pierre Barral, Deputy CEO, STOA Infra & Energy, said:
“STOA is impressed by the track record and performance of Husk, which has resulted in a competitive energy solution that is affordable, reliable and clean. STOA is excited to lead this equity investment in Husk and support the growth of the minigrid industry, which is key to achieving universal energy access and a low carbon energy transition.”
Concluded Brad Mattson, Husk Board Chairman: “The minigrid industry needs at least a 10X increase in its rate of deployment to achieve the World Bank’s target of 200,000 minigrids by 2030. Husk is now positioned to lead that growth and help to create an industrial revolution in rural Africa and Asia.”
