Yellow, a South African startup founded by leading entrepreneur Mike Heyink, has raised $23 million in debt financing led by Lion’s Head Global Partners, a London-based investment bank.
Founded in 2018 by Heyink and Maya Stewart to deliver life-changing tech products to low-income households in Africa, Yellow has provided power on a pay-as-you-go basis to 30,000 homes in Malawi and Uganda.
The recent injection, which comes nearly two years after it raised $3.3 million from institutional investors in a Series-A funding round, is part of its strategic expansion plans as it moves to expand its operations in Africa beyond energy provision.
Its debt transactions totaling $23 million will add Lion’s Head Global Partners to its existing investor list, which also includes Triple Jump, SunFunder, SIMA, and Trine.
The startup’s recent funding will be critical in delivering asset-backed finance to households in underserved areas that lack access to electricity, financial services, and connectivity.
The funding will also enable it to expand its footprint to over 100,000 customers in Malawi and Uganda, as it plans to expand its reach in Africa beyond energy provision and thrive in more verticals and geographies.
Yellow CFO Ross Thompson believes that the funding, along with debt facilities from new partners, will provide the startup with the resources that it needs to serve at least 1 million more people.
The South African firm earns money from its customers through monthly payments and cash payments from sales of items. The startup hopes to benefit from the massive growth in the addressable African consumer base, which is expected to double over the next 20 years.
