Husk Power Systems (“Husk”) has closed $43 million in Series D funding, the largest-ever equity raise in the minigrid industry.

The funding cements Husk’s position as the leader in electrifying communities in rural Sub-Saharan Africa and South Asia with an AI-enabled platform of renewable energy services.

The equity funding includes new investors STOA Infra & Energy, the US International Development Finance Corporation (DFC) and Proparco, as well as existing investors Shell Ventures, Swedfund and FMO.

In addition, Husk has leveraged the Series D equity to secure an additional $60 million in debt from several finance institutions, including the European Investment Bank (EIB), and the International Finance Corporation. (IFC).

Since raising $25 million in equity funding in 2018, Husk has grown its fleet 20-fold to more than 200 solar hybrid minigrids across two continents, impacted 500,000 people, served more than 10,000 micro, small and medium enterprises (MSMEs), avoided 25,000 tonnes of CO2, achieved a CAGR of 60% despite two years of Covid, and maintained exceptional customer loyalty with a retention rate of more than 90%.

It also became the first minigrid company to become EBITDA positive in Q4 2022, and has built a team of more than 500 employees.

Over the next 5 years, the new funding will be used to grow Husk’s fleet 8-times by adding more than 1,400 new minigrids with a projected 300,000 new connections (one-third of them MSMEs), while avoiding 350,000 tonnes of CO2.

Husk will also continue to build a world-class team and add 2,500 more employees, while expanding into new markets in Africa and Asia.

The Africa Sunshot initiative, which Husk announced at the Africa Climate Summit in September 2023, will mobilize at least $500 million for Husk to scale to 2,500 minigrids in 6 countries within 5 years. Two-thirds of the newly announced financing will go toward Sub-Saharan Africa, marking an important first step to achieving the Africa Sunshot goals.

Commented Manoj Sinha, Husk Co-Founder and CEO:

“We have successfully created and scaled a rural energy platform that is life-changing for our communities from day one. We’re excited to put this new equity and debt to work to supercharge Husk’s growth and unlock the full economic and social potential for a generation of rural Africans and Asians, especially women and youth, that would otherwise be left behind.”

Referring to the financing, Jean-Pierre Barral, Deputy CEO, STOA Infra & Energy, said:

“STOA is impressed by the track record and performance of Husk, which has resulted in a competitive energy solution that is affordable, reliable and clean. STOA is excited to lead this equity investment in Husk and support the growth of the minigrid industry, which is key to achieving universal energy access and a low carbon energy transition.”

Mateo Goldman, Acting Head, Office of Equity and Investment Funds, DFC, stated:

“This is an important transaction that will strengthen energy security across Africa and Asia, which will bolster investment, increase economic opportunity, and improve livelihoods. This project will help meet the growing demand for clean, affordable, and reliable energy vital to creating stability and prosperity.”

Added Amit Narayan, ex-CEO, AutoGrid Systems & Husk Board Member:

“Husk Power has shown how AI can be a catalyst for providing planetary-scale impact and sustainable growth. Husk’s intelligent platform allows automated management of rural minigrids operating under extreme environmental and cost constraints, and it has achieved what many felt was impossible by providing access to 24×7 reliable power to some of the most underserved communities in a profitable manner. I look forward to the next phase of this incredible story.

Mark Gainsborough, Chairman, Low Carbon Advisors & Husk Board Member commented:

“Husk Power represents a climate win-win-win. It is delivering low-carbon economic growth, it is helping climate-vulnerable communities adapt to increasing environmental shocks, and it is transitioning rural communities dominated by diesel generation to more affordable and cleaner solar power. It is extremely exciting that they now have infrastructure-level capital to scale this unique climate solution.”

Concluded Brad Mattson, Husk Board Chairman:

“The minigrid industry needs at least a 10X increase in its rate of deployment to achieve the World Bank’s target of 200,000 minigrids by 2030. Husk is now positioned to lead that growth and help to create an industrial revolution in rural Africa and Asia.”

Husk pioneered the community minigrid industry in 2008, creating a new category of decentralized renewable energy infrastructure that provides first-time access to reliable, affordable, clean and modern power.

It has since evolved its business model, expanding beyond energy access to include the energy transition from fossil fuels to renewables.

As a result, Husk has matured from a pure-play minigrid operator to become an integrated platform that unlocks the “Power of Rural” in Africa and Asia.

Besides electricity sales, this includes sales and financing of energy efficient appliances, turnkey commercial and industrial (C&I) rooftop solar and a range of low-carbon and climate-resilient energy services, including e-mobility, agro-processing and cold storage.

This innovative ecosystem approach is progressively becoming more intelligent and automated, powered by AI and IoT.

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Economies of scale and speed of deployment have been two major hurdles for the minigrid industry.

Interestingly, Husk Power announced new benchmarks that erased both barriers: it became the first company to own and operate more than 200 community solar minigrids in Asia and Africa. And it also averaged a rollout of 16 minigrids per month.

The two achievements follow closely on Husk’s announcement in January 2023 of being the first minigrid company to achieve corporate profitability.

Taken together, the trifecta of industry milestones – a profitable business model, a large portfolio of assets, and the ability to deploy minigrids in previously unseen numbers – are proof that the minigrid industry is scaling, with Husk Power, which pioneered the industry 15 years ago, showing the path forward.

At an event in India’s Uttar Pradesh state attended by government leaders, business partners and Husk executives, 16 new minigrids – all of which were built within a one month period – were inaugurated, taking Husk’s portfolio over the 200 mark.

Husk expects to double again its portfolio to 400 minigrids by the end of 2023. At the same time, Husk’s excellence and know-how in project deployment is being transferred to its operations in Sub-Saharan Africa, including Nigeria, where the company already has 12 sites in operation, with plans for up to 100 by 2023 and 500 by 2026.

Referring to today’s announcement, Manoj Sinha, Husk’s Co-Founder and CEO, said: “These latest milestones confirm our confidence – for Husk and for the industry as a whole – in scaling community solar minigrids and making a major contribution to achieving universal electrification in Asia and Africa. It took Husk four years to grow 10X and reach 200 minigrids, and we are now able to double our portfolio to 400 in just one year and begin our next 10X journey.”

In 2022, Husk became the first and only minigrid company to sign a UN Energy Compact, which included a commitment to building 5,000 minigrids by 2030 and displacing 700 million gallons of fuel for diesel generators, which currently dominate economies in Asia and Africa.

According to a Minigrid Industry Roadmap released in 2022, rate of deployment “may be the most daunting challenge” for the industry, noting that 10 companies with 10 times the current maximum rate of deployment are needed to achieve Sustainable Development Goal 7 (SDG7) – access to modern, affordable, clean, reliable energy for all.

Husk’s speed of deployment is the result of achieving efficiencies across multiple aspects of its business: site scoring and selection, land leasing and permitting, supply chain management, logistics and warehousing, construction and digital automation.

Since 2019, Husk has raised $40 million ($25 million in equity and $15 million in low-cost, long-term debt) and grew 10X despite being hit by Covid and other global market disruptions, demonstrating efficient deployment of capital and business resiliency.