Solar-based refrigeration company Koolboks secures $11 million funding for African expansion
Nigerian-French Cleantech Startup Koolboks Secures $11 Million Series A Funding
Koolboks, a leading cleantech startup based in Nigeria and France, has announced it has raised $11 million in Series A funding. The funding round was co-led by KawiSafi Ventures, Aruwa Capital, and All On, with additional debt financing from FFEM and bpifrance.
The fresh capital will be used to accelerate the growth of Koolbuy, Koolboks' platform offering buy-now-pay-later (BNPL) financing for their solar freezers and third-party cooling products. The funding will also support the setup of a local assembly plant in Nigeria within the next 12-18 months.
Koolboks operates in the $271.9 billion global cooling industry, with Sub-Saharan Africa being an underpenetrated market due to regulatory hurdles, high equipment costs, and lack of financing for consumers. Nigeria is Koolboks' largest market by revenue, followed by Cote d'Ivoire and Senegal. However, Kenya and parts of Central Africa have been tougher markets for Koolboks, due to regulatory and financing hurdles.
To combat these challenges, Koolboks has carved out a niche by combining locally assembled solar freezers with flexible financing, IoT monitoring, and trade-in programs. Customers can buy Koolboks' freezers outright or on installment through pay-as-you-go (PAYGO) financing options.
The upcoming Nigerian assembly plant should help Koolboks stay competitive on price and reach more businesses. The lower cost will be passed on to end-users, bringing down prices by 15-20%. The local assembly plant is expected to cut operation costs on logistics and import duties.
Koolboks' IoT-enabled units track temperature, usage, and payments remotely, providing recurring revenue from financing and data services. Returned machines from Scrap4New, Koolboks' trade-in program for old or broken freezers, are refurbished into solar-powered freezers and resold at lower prices. Other machines from Scrap4New are stripped for parts or recycled, cutting waste.
Inadequate access to cooling in Sub-Saharan Africa leads to food spoilage and lost income for small businesses in countries like Mozambique, Nigeria, and Sudan. By addressing this issue, Koolboks aims to improve the livelihoods of millions of people across the continent.
Few competitors offer the same mix of hardware, financing, and data services as Koolboks. The startup has secured grants and financing from FFEM/AFD, PREO, Efficiency for Access, Innovate UK, BGFA Uganda, CEI Africa, and the Shell Foundation.
With the new funding, Koolboks expects to deploy thousands more solar-powered freezers across Africa, helping small businesses keep their goods fresh and reducing food waste. The company's mission to provide affordable, sustainable cooling solutions is a significant step towards a greener and more prosperous future for Sub-Saharan Africa.
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