Nuru, a solar energy startup operating in the Democratic Republic of Congo (DRC), has secured $40 million in Series B equity funding. The round was led by the International Finance Corporation (IFC), the Global Energy Alliance for People and Planet (GEAPP), the Renewable Energy Performance Platform (REPP), Proparco, E3 Capital, Voltalia, the Schmidt Family Foundation, GAIA Impact Fund, and the Joseph Family Foundation. The IFC’s equity investment also includes financing from the Finland-IFC Blended Finance for Climate Program. Nuru aims to obtain an additional $28 million in project finance by the end of July, with AltRaise serving as the exclusive financial advisor for both the Series B transaction and accompanying project finance.
The funds will be utilized to establish three mini-grids in eastern DRC, specifically in Goma, Kindu, and the largest one in Bunia. These mini-grids, employing solar power and batteries, will have a combined generation capacity of 13.7 megawatts. Nuru already operates mini-grids in four other cities in eastern DRC. Given that less than 20% of the country’s population has access to energy, the mini-grids offer an opportunity to utilize renewable energy and bypass the need for fossil fuels, addressing the limited electrification in the region.
Nuru’s utility-scale solar mini-grids are designed to provide reliable and renewable energy 24/7 to the communities they serve, contributing to improved climate resilience and sustainable development in the country.
Founded in 2015 as Kivu Green Energy by Jonathan Shaw, a Kenya-born American, Nuru constructed Congo’s first mini-grid in 2017. Three years later, it established a 1.3-megawatt facility in Goma, which became the largest mini-grid in sub-Saharan Africa without connection to a national grid.
Jonathan Shaw expressed his excitement about partnering with the group of investors, emphasizing their commitment to expanding energy access and transforming lives in the DRC. He views the completion of the Series B funding as a significant milestone for Nuru and a demonstration of the viability of the metrogrid model in the distributed energy sector in Africa. Shaw expressed gratitude to the consortium of investors for their support and shared vision, affirming Nuru’s commitment to illuminating lives, driving economic growth, and empowering communities across the DRC.
Earlier in March, REPP, Proparco, and E3 Capital made initial investments in Nuru to bridge a financing gap and strengthen the Series B equity fundraise. Each of the three investors contributed $500,000 in a convertible note round.
Bloomberg reports that a Series C round of $90 million is expected to commence later this year. Nuru aims to raise a total of $300 million to achieve its goal of providing electricity to five million people in the DRC by September 24, 2024.