Husk Power Systems, a leader in rural electrification through renewable energy in Sub-Saharan Africa and South Asia, has successfully secured $43 million in Series D funding. This funding, the largest-ever equity raise in the minigrid industry, underscores Husk’s pioneering work in electrifying underserved communities. The Series D round includes participation from new investors STOA Infra & Energy, the US International Development Finance Corporation (DFC), and Proparco, along with existing investors Shell Ventures, Swedfund, and FMO.
Husk Power Systems has made significant strides since its last equity funding round in 2018, growing its solar hybrid mini-grid fleet more than 20-fold to over 200 installations across two continents. These installations have impacted 500,000 individuals, supported over 10,000 micro, small, and medium enterprises (MSMEs), and prevented 25,000 tonnes of CO2 emissions. Despite challenges posed by the COVID-19 pandemic, Husk achieved a compound annual growth rate (CAGR) of 60% and attained an EBITDA-positive status in Q4 2022. The company has also expanded its team to over 500 employees and maintains exceptional customer loyalty with a retention rate exceeding 90%.
The latest funding will be used to further expand Husk’s mini-grid fleet, adding more than 1,400 new installations and providing 300,000 new connections, one-third of which will support MSMEs. This expansion will help avoid 350,000 tonnes of CO2 emissions. Additionally, Husk plans to grow its workforce by adding 2,500 employees and expanding into new markets in Africa and Asia.
Husk’s Africa Sunshot initiative, announced at the Africa Climate Summit in September 2023, aims to mobilize at least $500 million to scale up to 2,500 mini-grids in six countries within five years. The majority of the new funding will be allocated to Sub-Saharan Africa, marking a significant step toward achieving the Africa Sunshot goals.
Manoj Sinha, Co-Founder and CEO of Husk expressed excitement about the new funding and the company’s mission to provide rural Africans and Asians with reliable and sustainable energy. Jean-Pierre Barral, Deputy CEO of STOA Infra & Energy, commended Husk for its affordable, reliable, and clean energy solution. Amit Narayan, Husk Board Member and ex-CEO of AutoGrid Systems, highlighted Husk’s use of AI to provide 24×7 reliable power to underserved communities, and Mark Gainsborough, Husk Board Member and Chairman of Low Carbon Advisors emphasized the climate benefits of Husk’s work.
Husk Power Systems, which pioneered community mini-grids in 2008, has evolved its business model to include energy-efficient appliances, commercial and industrial rooftop solar solutions, and various low-carbon and climate-resilient energy services. This ecosystem approach, driven by AI and IoT, helps empower rural communities in Africa and Asia with clean and affordable power.
The funding secured in this Series D round will play a crucial role in accelerating Husk’s mission to create a sustainable and low-carbon energy landscape in these regions.