Odyssey Energy Solutions, a US-based platform for financing small renewable energy projects in emerging markets, has raised $74 million, Latitude Media reports. The round includes $27 million in equity from investors such as Broadscale Group, FMO and Al Mada Ventures, and $47 million in debt from lenders including British International Investment and BIO, Belgium's development finance institution.
The problem it solves
A small solar installer in Lagos or Lusaka has two problems. Manufacturers want large minimum orders, and the installer has to pay for panels and batteries long before the customer pays. Odyssey combines orders from many installers to meet those minimums and get better prices, then sells the equipment on extended payment terms with a small deposit.
"You buy from us and we embed credit directly in that order, so you're solving your working capital and your procurement challenges in one swift transaction," co-founder and CEO Emily McAteer told Latitude Media. Odyssey charges fees rather than interest and keeps ownership of the equipment until it is paid for.
Why demand is rising
Nigeria and India are two of Odyssey's largest markets, McAteer said. Both have long relied on diesel generators to cover for weak grids, and higher diesel prices have made solar and storage more attractive. "It's basically a critical path infrastructure versus a nice-to-have," she said of distributed energy in emerging markets.
