UAE-based off-grid solar startup Pawame has raised $2.5 million in grants and equity, with a $5 million early-stage funding round planned in order to boost its growth and bring electricity into more households in Africa.
According to the company statement, “It has secured $1.7 million in grant commitments, plus $750k in equity including $250k from Launch Africa.”
Pawame provides a portfolio of unique, high-quality solar household systems in remote areas of Kenya on a micro-finance basis, repayable using mobile money, making safe, clean, and reliable energy accessible to everyone.
Mr. Alexandre Allegue, Chairman and Co-Founder of Pawame commented, “I am extremely proud of this announcement, as despite facing challenges during the pandemic, Pawame delivered exceptional results in 2020, including achieving bottom-line profitability and positive cash flow for the first time. We accomplished this thanks to our unique and sustainable value proposition, alongside a cost-effective execution and an exceptional team.”
Pawame aims to bring electricity to the homes of 580 million people in Sub-Saharan Africa, accounting for more than half of the region’s population. The company distributes, finances, and provides after-sales support for residential solar home systems using a rent-to-own, pay-as-you-go business model.
“Energy is just the beginning, supplanting dirty kerosene lamps, our solar products help protect as well as change the lives of off-grid families. The funds from our Series A equity round will allow us to accelerate our growth by delivering a broader array of life-changing products to more families in more of Kenya and, eventually, to other parts of Africa.”
Pawame is on track to expand its geographic footprint both within and outside of Kenya, with the series A fundraising likely to speed its growth even further. Its current investors are mostly from the Gulf Cooperation Council (GCC), with its largest shareholder being senior executives from the largest power utility companies of the Middle East as well as Launch Africa VC.