Madica, a structured investment program for pre-seed stage African startups, has provided funding to Nigerian climate-tech startup Earthbond, which makes it easier for African SMEs to access clean, affordable energy, to increase its financing capacity.
Earthbond, which was founded in 2023 by Chidalu Onyenso, is using group financing and carbon accounting to lower costs and risks in the energy transition as it tackles Nigeria’s US$14 billion off-grid generator market.
By providing access to embedded solar finance and a marketplace of certified solar suppliers and installers, the startup makes it possible for businesses to go solar. Since its inception, it has finished audits for over 100 eligible clients in Lagos, which translates to a possible pipeline of US$1 million in solar projects. Additionally, over 1,800 Nigerian SMBs have joined the waitlist, demonstrating the gap and product-market fit.
After having previously obtained funds from the Catalyst Fund and participated in the eighth Google for Startups Accelerator Africa cohort, Earthbond has now obtained US $200,000 in funding from Madica. Additionally, Earthbond will take part in Madica’s extensive investment program, which includes 18 months of focused company-building assistance.
Madica, a sector-neutral investment program founded in 2022 and connected to fintech-focused venture capital firm Flourish Ventures, aims to fill structural gaps in Africa’s startup ecosystem. Key issues that the program addresses include limited access to capital, a lack of investors, inadequate mentorship, and the absence of structured support that startups need to address pressing problems and promote innovation, entrepreneurship, and wealth creation throughout the continent.
The money will be used to increase Earthbond’s financing capacity, allowing it to originate US$10 million in targeted loan originations over the next three years. Earthbond, Madica’s fourth portfolio company, previously backed its first three startups earlier this year. Additionally, the funds will be used to improve marketing and sales initiatives as well as to create cutting-edge payment and maintenance systems that will improve the client experience.
In order to encourage companies to join the program, EarthBond also intends to generate a distinct revenue stream by providing discounts based on carbon credits.
“This is a pivotal moment for Earthbond, and a powerful endorsement of our mission. We’re really excited to be joining the Madica portfolio family. Leading the charge of energy transition is no easy feat and we are glad to be joined by renowned investors who share our passion and drive. We look forward to the doors this support opens and also to a greener and cleaner future,” Onyenso said.
As Earthbond addresses some of the most pressing climate issues of our time, Madica CEO Emmanuel Adegboye expressed his excitement about investing in the company.
“We won’t be able to continue the advancements of the African tech ecosystem without addressing power, and we are impressed by the team at Earthbond, their vision, and the technology that provides an affordable and eco-friendly solution. Earthbond has tremendous potential to drive an equitable clean energy future and positively impact our region,” he said.
“Investing in Earthbond reaffirms our mission to demonstrate that exceptional founders and products exist beyond the usual homogeneous groups, and we remain devoted in our quest to support underrepresented founders and fuel the growth of pioneering startups across underserved African regions.”
