Yellow, a South African asset financier for digital gadgets and solar energy, has raised an unknown sum of Series C capital to expand its clientele.
Mike Heyink and Maya Stewart founded Yellow in 2018 with the goal of providing low-income rural homes with last-mile delivery of reasonably priced “pay as you go” (PAYG) solar home systems. It has spread over the continent and added digital gadgets like smartphones to its list of products.
The company has over 200 employees and has made financing for cellphones and off-grid solar systems accessible to over a million users. Yellow evaluates clients and offers financing for necessary goods using AI-enabled credit assessment.
Convergence Partners, which also led the startup’s US$14 million Series B financing in 2023, led Yellow’s Series C funding round, the value of which is unknown. The funding helps the business grow in its major markets, which include Nigeria, Malawi, Zambia, Uganda, Rwanda, Madagascar, and the Democratic Republic of the Congo (DRC).
“Yellow is delighted to deepen our partnership with Convergence – the capital allows us to broaden our impact on the continent,” said Mike Heynik, CEO of Yellow. “Having recently served customer number one million, their investment puts us on track to achieve our target of serving 10m customers with access to electricity and internet by 2030.”
Brandon Doyle, CEO of Convergence Partners, said the firm remained confident in Yellow’s business and management team.
“Yellow has demonstrated significant progress since our initial investment. Our decision to lead this funding round reflects our continued belief in the business, its management team and the opportunity ahead,” Doyle said.
