In a significant move to enhance renewable energy access in Nigeria, Madica, an investment firm focused on early-stage African startups, has announced a $200,000 pre-seed funding round for Earthbond, a climate tech startup dedicated to facilitating solar energy solutions for small and medium-sized businesses (SMBs). Founded in 2023 by Chidalu Onyenso, Earthbond aims to address the pressing energy challenges faced by Nigerian businesses by providing a platform that connects them with solar solution providers.

Earthbond's Mission

Earthbond operates within Nigeria's burgeoning clean energy sector, where small businesses struggle with unreliable power supplies and the rising costs of diesel and petrol generators. The startup's platform enables SMBs to assess their solar energy needs and connect with accredited solar installers, financing options, and loan providers. This initiative comes at a crucial time when fuel prices surged by 40% in September, pushing many businesses to seek sustainable and cost-effective energy alternatives.

Chidalu Onyenso, the founder and CEO of Earthbond, stated, “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.” Earthbond has already audited the solar needs of over 100 businesses in Lagos, with a potential market value of $1 million. More than 1,800 SMBs have joined the company's waitlist, highlighting the demand for solar solutions in the region.

Financing for Solar Solutions

The funding from Madica will enable Earthbond to onboard additional SMBs and expand its reach within the Nigerian market. By partnering with four microfinance banks, Earthbond offers flexible repayment plans of up to 48 months, making solar energy more accessible to businesses that previously faced high installation costs. This financing structure is essential for fostering the adoption of clean energy technologies in Nigeria, where high upfront costs have deterred many potential users.

Market Context

The backdrop to Earthbond’s efforts is the ongoing energy crisis in Nigeria, where frequent grid failures have compelled about 86% of companies to rely on costly fossil-fuel generators. The nation’s electricity grid experienced 46 collapses between 2017 and 2023, leading to financial losses exceeding $29 billion annually for businesses dependent on these generators. As a result, solar power emerges as a viable and sustainable alternative, yet many SMBs remain hesitant due to the high initial investment required.

Earthbond’s innovative approach addresses this challenge by offering group financing solutions and a marketplace for businesses to connect with reputable solar providers. This model not only simplifies the transition to solar energy but also aims to reduce the financial risks associated with such investments.

Growth and Future Plans

With the backing of Madica, Earthbond is poised for significant growth. The investment will allow the startup to enhance its marketing strategies, expand its financing capabilities, and develop new customer-oriented payment tools. Additionally, Earthbond plans to introduce a unique revenue stream by offering discounts based on carbon credits, further incentivizing businesses to adopt sustainable energy practices.

Earthbond will also participate in Madica’s comprehensive 18-month company-building program, which includes personalized support, mentorship, and networking opportunities with potential investors. This structured support aims to bolster Earthbond’s operational capabilities and ensure its long-term viability in the competitive clean energy market.

The Broader Impact

Emmanuel Adegboye, the head of Madica, expressed optimism about the investment, stating, “Earthbond has tremendous potential to drive an equitable clean energy future and positively impact Africa. We remain devoted to supporting underrepresented founders.” This investment underscores the critical role that innovative startups like Earthbond play in addressing significant climate challenges and advancing the renewable energy agenda in Africa.

As Earthbond positions itself alongside other players in Nigeria’s renewable energy sector, such as Rensource Energy, M-KOPA, and Arnegy, it contributes to the national goal of increasing solar capacity from 3.13 gigawatts (GW) to 5.01 GW by 2029. The startup’s efforts are part of a broader movement to transition Nigeria toward a more sustainable energy landscape.

Madica’s investment in Earthbond marks a pivotal moment for the startup and the clean energy sector in Nigeria. By enabling small businesses to transition to solar power, Earthbond not only addresses immediate energy challenges but also contributes to the long-term sustainability goals of the region. With a robust support system from Madica and a growing demand for solar solutions, Earthbond is set to play a vital role in reshaping the energy landscape for SMBs in Nigeria, driving both economic growth and environmental responsibility.