Novastar Ventures has announced a $3.5 million investment in Sistema.bio, a Nairobi-based company revolutionizing renewable energy access for smallholder farmers. This funding is part of a $7.75 million internal round that Sistema.bio will utilize to expand its biogas technology and digital solutions across Africa. The investment is backed by Novastar’s Africa People + Planet Fund III, which is dedicated to promoting sustainability and economic growth.
Novastar Ventures, with offices in Nairobi, Lagos, and London, has a strong track record of supporting startups that address fundamental challenges in Africa. In 2020, Novastar closed its second fund at $108 million to support early and growth-stage startups in East and West Africa.
The Africa People + Planet Fund, launched by Novastar Ventures, aims to raise over $200 million for climate solutions and agricultural investments. This fund focuses on companies that help people adapt to climate change and access clean technologies.
The investment in Sistema.bio is part of a broader strategy to support companies providing sustainable solutions in the renewable energy sector. Sistema.bio aims to reduce global greenhouse gas emissions by 1% by 2030 by targeting new markets and technologies.
Sistema.bio’s biogas technology offers a sustainable solution for family farmers, enabling them to convert animal waste into renewable energy for cooking and electricity, as well as biofertilizer for improved soil health. Operating in over 12,000 farms across 31 countries, the company has positively impacted more than 100,000 farmers in sub-Saharan Africa.
This technology not only reduces greenhouse gas emissions but also lowers energy costs for farmers, contributing to increased productivity and sustainability. The company’s operations span multiple African countries, positively impacting over 100,000 farmers in sub-Saharan Africa.
Additionally, Sistema.bio’s acquisition of Inclusive Energy has bolstered its digital monitoring and verification (MRV) capabilities. This integration facilitates remote diagnostics, usage analytics for carbon reporting, and data insights for predictive maintenance, ensuring efficient and reliable service for farmers.
Joyce Cacho, Board Chairman of Sistema.bio, commented;
This investment strengthens our mission to empower low-resourced farmers with solutions that drive economic growth and climate resilience. Together, we are scaling impactful technologies that benefit both people and the planet.
Novastar Ventures Co-founder Steve Beck added;
Sistema.bio empowers family farmers to transform waste into renewable energy and fertilizer, unlocking productivity and resilience while reducing greenhouse gas emissions. We’re excited to partner at this growth stage and contribute to their carbon market initiatives.
This collaboration highlights Africa’s pivotal role in global climate action, showcasing the continent’s potential to lead in sustainable agricultural innovation. By leveraging innovative biogas technology and enhancing digital capabilities, this partnership aims to promote sustainable agriculture, improve energy access, and contribute to climate resilience across the continent.
