South African climate fintech, Hohm Energy, has secured $8m in its successful final close of the seed round.
According to a statement, this marks the largest seed round for a technology startup in South Africa.
The funding was led by E3 Capital and 4DX Ventures, with additional support from new investors, including Breega, E4E Africa, TO.org, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures.
Hohm Energy said it would now accelerate the adoption of rooftop solar in the region by investing in its new cutting-edge climate fintech strategy.
It added that the new fund would enable it to bolster tech, product innovation, and solar installer skills development to make rooftop solar more accessible, trusted, and affordable for everyone.
The company said it leveraged technology to tackle challenges in South Africa’s $51.4bn complex rooftop solar market, streamlining the design.
According to the firm, it also schedules and procures processes for installers and enhances accessibility for buyers, mitigating delays, installation flaws, compliance risks, and financing obstacles.
Part of the statement reads, “Amid a growing energy crisis, South Africa finds itself in the grip of escalating power shortages, resorting to daily electricity rationing to prevent a nationwide grid collapse.
“Eskom, the state-run power generator, has acknowledged a staggering power shortfall of over 6,000 megawatts at times. In addressing these challenges, Hohm Energy provides an alternative and sustainable energy source to the 7.7 million addressable households, helping to ease the strain on the national grid.
“To date Hohm Energy has generated over 17,000 custom solar rooftop designs using its solar proposal engine worth $190m, originating over $90m in finance applications to its retail banking partners.”
Speaking on the investment, Chief Executive Officer of Hohm Energy, Tim Ohlsen, stated ‘The energy system in South Africa is broken. ClimateTech is key to solving the current challenges through the provision of a scalable and sustainable alternative.
“Our robust software platform and fintech marketplace, which enables us to offer value to all stakeholders, is pivotal in enhancing the efficiency of rooftop solar installations and ultimately mitigating the severity of load-shedding being experienced.”
The Senior Partner at E3 Capital, Vladimir Dugin, added, “We are thrilled to announce our inaugural investment in Hohm Energy. With its tech-driven approach, Hohm is at the forefront of South Africa’s green energy revolution.
“The team is uniquely positioned to create a “one-stop shop” for all green solutions for residential customers and address existing challenges around energy supply.”
SOURCE: PUNCHNG
