Altech Group Raises $18m Growth Capital
The DRC-based startup created a sales and distribution network with a national footprint, counting 4,500 employees and sales agents, covering more than 140 shops across 22 out of 26 provinces in the DRC.
Altech Group has raised US$18 million in debt financing and grants to continue strengthening its market position and expand access to energy across the country. The group has positively impacted the lives of more than 1.7 million Congolese by selling over 350,000 solar energy products.
According to reports, the US$18 million growth capital announced will enable Altech to open more than 30 new sales outlets in rural areas without competition, and distribute 180,000 solar products, to extend clean, reliable energy access to 900,000 people.
The debt financing was provided mainly through separate facilities by the Energy Entrepreneurs Growth Fund (EEGF) Triple Jump and Rabobank, respectively. At the same time, Altech has received additional support from Social Investment Managers & Advisors (SIMA Funds), SIDI (Solidarité Internationale pour le Développement et l’Investissement), Kiva, Whole Planet Foundation, and EquityBCDC. The grants were provided by Creating Hope in Conflict: a Humanitarian Grand Challenge and ANSER RDC.
Washikala Malango, Altech co-founder, said: “Since our humble beginning in 2013 in our off-grid city of Baraka in South-Kivu province in the Eastern part of the DRC, we have faced the severe challenge of obtaining working capital financing in our efforts to connect off-grid households in the rural, peri-urban, and urban areas of our country.”
“The incredible support from Rabobank and EEGF, as well as our other lenders, is one of the main pillars for Altech to provide affordable clean energy to thousands of Congolese off-grid households to modern, clean, reliable, and affordable solar solutions while creating thousands of green jobs for Congolese youth.”
Mark van Doesburgh, Deputy Head of the Direct Investments team of Triple Jump, said: “This investment aligns with our commitment to investing in innovative solutions that address critical global challenges, and we believe that Altech will continue to make a real difference in people’s lives. Recent market shocks such as COVID-19 and the increases in food and energy prices are hitting the world’s poorest the hardest. Providing access to clean, affordable, and reliable energy is one improvement we can make to people’s lives.”