- Hohm Energy, a South African climate startup, has reportedly filed for voluntary liquidation with the Companies and Intellectual Property Commission (CIPC), an agency of the Department of Trade, Industry, and Competition in South Africa.
- On Monday, the company notified its creditors that those with claims over R1,000 ($56.66) are entitled to nominate a liquidator for the appointment.
- Hohm Energy reportedly halted operations due to financial difficulties including challenges in servicing existing debts in August 2024.
In February 2024, the company raised $8 million in seed funding to boost its new climate fintech strategy, focusing on tech advancements, product innovation, and solar installer skill development.
Meanwhile, Hohm's parent company, Spark Energy, clarified that there was a misunderstanding regarding the capital raise.
Per MyBroadband, the CEO of Spark Energy, Franc Gray, confirmed that all the capital that has been raised was secured by Spark.
“Spark raised $8 million, but that was really over a period of two-and-a-half years,” he added.
Furthermore, he highlighted that, “Hohm is obviously a major benefactor of that funding, but it wasn’t the only benefactor, and the money wasn’t just raised to come into a South African entity called Hohm Energy.”
Gray acknowledged that the company encountered difficulties, as it had prepared for a surge in demand for solar products due to severe load-shedding in recent years but the reduction in load-shedding towards the end of 2023 and into 2024 led to decrease in demand affecting the company.
This was further confirmed by a recent study from ABSA bank, which found that demand for alternative energy solutions had declined in the second quarter of 2024.
Founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, Hohm Energy offers homeowners and businesses in South Africa the opportunity to adopt solar solutions by providing them with accredited solar installers, product suppliers, and embedded solar financing.
The startup's proprietary platform connects all stakeholders in the solar value chain. It allows solar installers to design, manage, and finance projects, while customers can assess their solar needs and obtain credit financing for rooftop installations.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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