Pawame, a UAE-based startup specializing in providing solar energy in remote areas, announced that it has successfully raised a total amount of $2.5 million, including $1.7 million in direct financing, in addition to securing $750,000 in equity financing, including shares worth $750,000. $250,000 from the Lunch Africa Fund. The company also announced that it is launching its first funding round to raise $5 million to boost its growth and expand its activities in Africa and empower individuals to build a brighter future.
Bawama provides a variety of innovative and high-quality home solar energy systems to remote areas of Kenya on a micro-finance basis, using mobile payment methods, giving all individuals access to a safe, clean and reliable energy supply. The company’s business model relies on harnessing energy to help families build a credit history that secures later access to other, positively life-changing Pawame products that were previously unaffordable or unaffordable.
Alexander Alleg, Chairman and Co-Founder of Bawama, said: “We are very proud of this announcement, which is in addition to several exceptional results achieved by the company during the year 2020, despite the challenges associated with the “Covid 19” crisis, including increasing profitability and improving positive cash flows for the first time. We have been able to achieve this thanks to our unique sustainable value proposition, cost-effective implementation processes and our reliance on an exceptional and highly qualified team.”
Bawama has received grant funding from a variety of sources around the world, including funding from the Netherlands Enterprise Agency based on results achieved within the framework of the United Nations Sustainable Development Goal 7, which will allow Bawama to accelerate its growth and mitigate the risks of its geographical expansion within Kenya.
Bawama also received a grant from the Energy and Environment Partnership (EEP), which will ensure the acceleration of the company’s product development, and the financing of its pilot projects for new products such as water pumps and solar-powered refrigerators. In addition, Bawama has received grant funding from the Netherlands Development Corporation (SNV) under the framework of the second round of the Market-Based Energy Supply (MBEA-II) project, which will ensure funding for support and revitalization initiatives in the Kakuma and Kalube refugee camps.
Pawame secured additional financing through the African Renewable Energy and Adaptation Technologies Platform (REACT) of the African Project Challenge Fund (AECF), the Kenya Off-grid Solar Access Project (KOSAP) funded by the World Bank, as well as the Securing $750,000 in financing, including $250,000 in equity, from the Lunch Africa Fund.
By relying on its team of 80 employees and more than 200 agents and contract technicians, the company aims to provide electricity to more than one million people without access to electric power grids in sub-Saharan Africa by 2025. The company plans to expand its product portfolio to include new innovations that improve people’s lives, including income-generating equipment such as water tanks, water pumps and solar-powered refrigerators, which helps families in rural areas start their businesses, as well as enabling farmers to extend the life cycle of their crops.
For his part, Maurice Barretts, CEO of Pawame, said: “We continue to focus on developing solar energy, which enables power generation and lamp lighting based on a clean alternative to environmentally harmful kerosene, and our products contribute to protecting and improving the lives of families who do not have access to power supplies. energy. Our first funding round will allow us to accelerate our growth by offering a broader range of products that are creating positive change for families in Kenya and many other parts of Africa.”
Pawame seeks to expand its geographical presence inside and outside Kenya, where it will take advantage of the first funding cycle launched by it to secure sufficient liquidity to accelerate its growth path. Pawame receives funding mainly from investors in the Gulf Cooperation Council countries, including CEOs of major energy companies in the Middle East, as well as the Lunch Africa Fund.
Baljinder Sharma, Fund Manager, Launch Africa Ventures, said: “Our investment is based on a simple approach: without electricity or grid connectivity, people will not benefit from the massive growth potential of the digital world. Pawame focuses primarily on providing equipment that operates independently from the main electricity grid using an affordable pay-as-you-go system, and offers value propositions that go beyond providing electricity, which enhances the company’s contribution to achieving economic growth for many disadvantaged communities.”
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