Grace Ashiru
Convergence Partners has led a Series C round in Yellow, the asset financing company that sells smartphones and off-grid solar systems on credit across sub-Saharan Africa. The round size was not disclosed.
The cheque is a follow-on. Convergence was already on Yellow’s cap table, and this round deepens a relationship the firm says has performed since its first investment. Proceeds go toward expansion in Yellow’s core markets: Malawi, Zambia, Uganda, Rwanda, Madagascar, the Democratic Republic of Congo and Nigeria.
Yellow now employs more than 200 people and has financed over one million customers. Its model is pay-as-you-go asset finance, with an AI-driven credit scoring layer used to underwrite customers who typically have no formal credit history. The products it finances, a phone and a solar home system, sit at the base of two of the continent’s largest access gaps: connectivity and electricity.
Brandon Doyle, CEO of Convergence Partners, framed the decision as conviction in the operating team rather than a fresh bet. He said Yellow has made significant progress since the firm’s first investment, and that leading the round reflects continued belief in the business and the opportunity ahead.
Yellow CEO Mike Heynik said the company recently served its millionth customer and that the new capital puts it on track for a target of 10 million customers with access to electricity and internet by 2030.
For Convergence, the deal fits an established thesis of backing technology-enabled businesses that widen access to essential services in Africa. For Yellow, the sevenfold jump from one million to ten million customers in four years is the number to watch, and it will depend heavily on how the DRC and Nigeria perform, the two largest and hardest markets on its list.
