Energy Entrepreneurs Growth Fund invests in Yellow's Series B round
Yellow, a provider of affordable and reliable energy, as well as internet connectivity access for consumers in Africa, announced the first close of its Series B equity round.
Yellow received investment from the Energy Entrepreneurs Growth Fund (EEGF), represented by Triple Jump.
Over the past five years, Yellow has achieved revenue growth of over 250% CAGR and has served more than 360,000 customers in Malawi, Rwanda, Uganda, Zambia and Madagascar.
The capital raised through this equity round will enable Yellow to continue executing on its strategy of delivering value-for-money products by identifying and attracting customers committed to investing in assets with long term improvements for their lives.
“We are excited to have the support of EEGF,” said Michael Heyink, founder and CEO of Yellow. “The investment represents a successful first close of our Series B equity round, and is a strong vote of confidence in Yellow. This investment will enable Yellow to accelerate its pursuit of providing accessible and affordable clean energy and internet connectivity products to some of the world’s hardest to reach customers.”
Mark van Doesburgh, deputy head of Triple Jump’s direct investments team said, “We are excited to continue partnering with Yellow to support its growth as it expands renewable energy access in East and Southern Africa. This investment aligns with our commitment to investing in innovative solutions that address critical global challenges, and we believe that Yellow has the potential to make a real difference in people’s lives. Recent market shocks such as Covid-19 and the increases in food and energy prices are hitting the world’s poorest the hardest. Providing access to clean, affordable and reliable energy is one improvement we can make to people’s lives.”
EEGF is designed to provide patient, flexible capital combined with technical assistance that is currently lacking in the off-grid energy ecosystem. It provides financing in equity, debt and mezzanine instruments to achieve tailored solutions to meet the changing needs of growing energy companies. With a fund life of 12 years, EEGF provides a longer investment holding and support period, recognising the inherent need for such businesses in emerging economies to unlock value creation to their stakeholders. EEGF has already invested in 10 businesses, using bespoke capital solutions to meet these enterprises’ specific needs.