In a funding round backed by the Foundation for Clean Energy and Energy Inclusion for Africa (CEI Africa) and crowdfunding sites Republic and Klimja, climate fintech MPower Ventures AG has raised $2.7 million. The money, which is set up as a mix of stock and subordinated debt, is intended to help MPower, which provides small- and medium-sized solar energy solutions, expand more quickly throughout West and Southern Africa.
CEI Africa has made its first co-investment using crowdfunding platforms by pledging €1.1 million ($1.2 million) to MPower. This investment is a component of MPower’s larger crowdfunding effort, which has raised €1.7 million ($1.85 million) on Republic and €795,000 ($860,000) on Klimja, with additional contributions from angel investors. With the money, MPower will be able to strengthen its product line, grow its network of distributors, and create financing options that will increase access to clean energy.
MPower was founded in 2017 by Manuel Seiffe, Greg Nau, and Michael Eschmann. It distributes solar products throughout Africa using a business-to-business (B2B) model that combines financing, software, and hardware. The company offers solar solutions for homes, small enterprises, and agribusinesses, concentrating on markets with unstable or nonexistent electrical networks. The four main business segments form the framework of MPower’s portfolio.
MPower enables solar installers, distributors, and corporate clients to purchase and deploy solar solutions more effectively by combining financing and distribution. More than 50,000 solar items have been sold by the company so far in seven African nations: Zambia, Cameroon, Togo, Ghana, Namibia, Botswana, and Zimbabwe.
“At MPower, we are convinced that solar energy, when paired with accessible financing, represents one of the most powerful drivers of economic growth in Sub-Saharan Africa,” said Manuel Seiffe, CEO and co-founder of the company, emphasizing the role that financial innovation plays in combating energy poverty. We can move more quickly to provide clean and reasonably priced energy solutions with CEI Africa’s investment and crowdfunding support.
CEI Africa was founded in 2021 by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development with the goal of bridging funding gaps in projects related to rural electrification. “This investment will give MPower the resources needed to expand its reach and deliver off-grid solar solutions to more underserved communities across Africa,” said Steven Evers, a member of CEI Africa’s executive board, underscoring the company’s impact.
MPower’s business strategy is set up to increase distributor efficiency while making solar products more affordable for final consumers. By streamlining inventory logistics and automating customer relationship management (CRM) procedures, the company’s proprietary software enhances supply chain management. MPower successfully reduces operating costs by utilizing technology, enabling scalable and long-term growth.
Institutional investors, impact funds, and international development organizations such as South Pole, InnoEnergy, the Swiss Capacity Building Facility, and UK Aid have all provided financial support to the company. Global organizations like the Climate-KIC Accelerator and the Solar Impulse Foundation have also acknowledged MPower for its contributions to climate-friendly innovation.
With the acquisition of fresh capital, MPower Ventures is poised to increase its presence in Africa’s solar industry and give marginalized populations more access to dependable and sustainable electricity.
