22 October 2024: Madica, a structured investment program designed for pre-seed stage startups in Africa, has announced its investment in Earthbond, a climate tech startup unlocking affordable, reliable solar energy for Nigerian SMEs via an integrated clean energy marketplace. Following the investment, Earthbond will participate in Madica’s comprehensive investment program which includes 18 months of dedicated company-building support.
Launched in 2022 and affiliated with Flourish Ventures, a global Fintech venture capital firm with purpose, Madica provides investment funding of up to $200,000 and delivers support to portfolio companies through a highly personalised startup curriculum, hands-on mentorship, and fully-funded week-long founder immersion trips. Selected startups also stand to gain executive coaching opportunities, and access to Madica’s global network of investors for follow-on funding – all designed to spur growth and ensure the long-term viability of the startups.
Founded in 2023 by Chidalu Onyenso, an experienced product manager with an MBA degree from Harvard and more than 10 years in the field, Earthbond is tackling Nigeria’s $14B off-grid generator market by leveraging group financing and carbon accounting to reduce costs and risks in the energy transition. Between 2017 and 2023, Nigeria’s grid collapsed 46 times, forcing about 86% of companies to rely on costly and polluting fossil-fuel generators, which cost businesses over $29 billion annually. Solar power offers a cheaper and more sustainable alternative, but high installation costs deter small and medium businesses (SMBs) from its adoption. To address this challenge, Earthbond enables businesses to go solar through access to embedded solar finance and a marketplace of accredited solar installers and suppliers.
Since launch, Earthbond has completed audits for more than 100 qualified customers in Lagos, representing a potential pipeline of $1 million in solar projects. More than 1,800 Nigerian SMBs have also expressed interest by joining the waitlist, highlighting the gap and product-market fit. The rising startup has established partnerships with four local commercial and microfinance banks to facilitate loans for SMEs seeking to transition to solar power.
Madica’s investment will help drive Earthbond’s ambitious growth by boosting its financing capacity, enabling $10 million in targeted loan originations over the next 3 years. The funds will also enhance sales and marketing efforts and develop innovative maintenance and payment tools to enhance the customer experience. Additionally, EarthBond plans to create a unique revenue stream by offering discounts based on carbon credits, incentivising businesses to join the program.
Chidalu Onyenso, Earthbond CEO, said: “This is a pivotal moment for Earthbond, and a powerful endorsement of our mission. We’re really excited to be joining the Madica portfolio family. 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. We look forward to the doors this support opens and also to a greener and cleaner future”.
Emmanuel Adegboye, Head of Madica said, “We are excited to be investing in this exceptional startup as it tackles some of today’s biggest climate challenges. We won’t be able to continue the advancements of the African tech ecosystem without addressing power, and we are impressed by the team at Earthbond, their vision, and the technology that provides an affordable and eco-friendly solution. Earthbond has tremendous potential to drive an equitable clean energy future and positively impact our region.
“Investing in Earthbond reaffirms our mission to demonstrate that exceptional founders and products exist beyond the usual homogeneous groups, and we remain devoted in our quest to support underrepresented founders and fuel the growth of pioneering startups across underserved African regions.”
Earthbond recently joined fellow Madica portfolio companies Kola Market, GoBEBA, and Newform Foods and mentors on an immersive trip to London, showcasing Madica’s dedication to founder growth. This fully-funded, week-long initiative, coming on the back of the previous trip to South Africa was designed to fully immerse founders in the UK entrepreneurial ecosystem, opening up investment and partnership opportunities within the Afro-European corridors. Founders engaged in expert-led sessions, networked with potential investors and stakeholders, and participated in deep-dive workshops on investment readiness, organizational culture, and team building. As part of the carefully curated itinerary, the team also participated in various tech startup events and Africa & Diaspora-focused activities, including Africa Ignite x London Africa Network, Africa Tech Summit London Edition, London Startup Ecosystem Mixer by Hoaq and Wimbart, among others.
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About Madica: Launched in 2022, Madica is an Africa-focused pre-seed investment program empowering underrepresented and underfunded mission-driven founders on the continent. The sector-agnostic platform, affiliated with Flourish Ventures, aims to empower entrepreneurs with the provision of funding and also democratize access to world-class company-building support.
