Malawian asset financier, Yellow, has closed $14 million in series B funding to launch digital and financial products.
Convergence Partners led the round, and Energy Entrepreneurs Growth Fund and Platform Investment Partners participated.
In 2018, Mike Heyink and Maya Stewart founded Yellow in Malawi to bring solar energy to the country.
Since then, it has expanded across Africa and broadened its product offerings to include digital devices like smartphones.
Yellow wants to use the funds to expand its presence in its current markets, including Rwanda, Uganda, Zambia, and Madagascar, while preparing for additional debt funding rounds to accelerate its expansion.
It also plans to leverage more debt financing to reach more customers with financed smartphones and solar systems.
The startup operates through a network of 1,100 agents using its Ofeefee app, serving over 400,000 customers. Thus, Yellow says it has achieved a compound annual growth rate of 265% over the past four years.
The company's most popular product is a small home solar system, including a 6W-10W panel, 20-50Wh battery and cellphone chargers. It also sells solar systems and smartphones.
Yellow also provides larger solar systems and smartphones. Customers make a deposit and then pay the remaining balance in monthly instalments.
Users pay a deposit of $10 and $68 for the small and large solar home systems, respectively, and remit the balance through monthly payments spread out over six and 24 months.