Wetility, a South African startup specializing in solar energy solutions for both residential and commercial sectors, has successfully secured funding of R903 million (approximately $48 million) through a combination of debt and equity.
This solar energy innovator from South Africa, Wetility, has amassed R903 million (around $48 million) in a combined debt and equity funding round. Vincent Maposa, the CEO, has indicated that these funds will be channelled towards bolstering expansion efforts and enhancing their clientele.
The recent financial round includes R180 million in convertible debt, complemented by a R600 million commercial debt package. Notable lenders in this venture include Sanlam and other prominent commercial and development banks. MultiChoice had previously spearheaded Wetility’s initial venture debt financing through its MultiChoice Accelerator Program, a segment of the MultiChoice Innovation Fund, back in January 2022. Additionally, a marketing collaboration between the two entities has allowed Wetility to tap into SuperSport’s audience for product promotion.
Established in 2019, Wetility’s signature offering is a comprehensive digital solar energy management system, branded as the “360 Wetility Experience”. This system integrates rooftop photovoltaic installations or solar panels. These panels energize the system’s nucleus, which consists of a hybrid inverter, lithium-ion batteries, and switchgear. Their product, PACE, orchestrates the energy distribution to clients’ residences or businesses, adeptly managing power outages and transition schedules. All this data is then collated on a dashboard named “We-X”, where users can remotely oversee the system and process subscription payments.
Johanna Hortz, Wetility’s Chief of Staff, conveyed to TechCabal via email, “This recent financial milestone for Wetility underscores the faith and assurance our clients, investors, and business partners place in our vision. With this fresh capital, we’re poised to expedite our growth trajectory and make significant inroads in both the South African market and the broader power fintech domain.”
When probed by TechCabal about the company’s decision to predominantly raise funds through debt, Hortz cited the capital-intensive nature of their industry and the imperative to make hybrid solar solutions affordable via subscription models. She elaborated, “To champion these initiatives, it’s crucial to maintain a robust balance sheet and ensure optimal levels of gearing. While it’s essential to monitor debt-to-equity ratios, they must be judiciously managed to guarantee fiscal stability, especially when navigating aggressive growth strategies in a capital-heavy sector like ours.”
Wetility has set its sights on evolving from a $1.5 million (around R29 million) enterprise to a whopping $142 million (approximately R2.7 billion) business by 2026. Given the persistent challenges faced by Eskom and Wetility’s recent capital boost, the company seems well-positioned to achieve this goal, especially as South Africans are actively exploring alternatives to the unreliable national power grid.