Husk Power raises $43m for Asia, Africa mini-grid strategy

Investors include Shell Ventures, STOA Infra & Energy, and a host of development finance institutions such as the US International Development Finance Corporation (DFC), Proparco, Swedfund, and FMO. Husk described it as the largest-ever equity raise in the mini-grid industry.

It coincides with an additional USD 60m in debt funding sourced from the likes of the European Investment Bank and the International Finance Corporation (IFC). Total funding since the company’s inception in 2008 now amounts to around USD 130m. Earlier backers include Acumen Fund, Cisco Investments, and Draper Fisher Jurvetson India.

Husk brands itself as a pioneer of the mini-grid industry, the leading net-zero energy company serving rural Asia and Africa, and owner-operator of the largest fleet of community solar mini-grids across the two continents. It defines its mission statement as enabling rural economic growth and social well-being through modern and affordable electricity.

The company claims its decentralised renewable energy infrastructure provides first-time access to reliable, affordable, clean and modern power. Its business model has expanded beyond energy access to include energy transition themes such as energy-efficient appliances, turnkey rooftop solar, e-mobility, agri-processing, and cold storage.

This ecosystem is progressively becoming more automated with artificial intelligence (AI) and internet-of-things. Since a USD 25m funding round in 2018, the solar hybrid mini-grid fleet across Asia and Africa grew 20x to 200 installations. The company became EBITDA-positive in late 2022.

The plan is to expand to 1,400 mini-grids in the next five years, growing the staff from 500 to 2,500 across the two continents. Two-thirds of the Series D capital is expected to go toward Africa, with the remainder going to South Asia.

“Husk Power has shown how AI can be a catalyst for providing planetary-scale impact and sustainable growth,” Amit Narayan, ex-CEO of US distributed energy player AutoGrid Systems and a Husk board member, said in a statement.

“Husk’s intelligent platform allows automated management of rural mini-grids operating under extreme environmental and cost constraints, and it has achieved what many felt was impossible by providing access to 24×7 reliable power to some of the most underserved communities in a profitable manner.”

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• Topics
• South Asia
• Industrials
• Cleantech
• Infrastructure
• Expansion
• India
• Africa
• International Development Finance Corporation (DFC)
• FMO
• IFC
• renewable energy
• energy