Zola Electric Secures $90M Funding to Expand Solar Technology

Addressing Energy Poverty with Distributed Renewable Solutions

A significant portion of the population in sub-Saharan Africa and developing economies still lacks access to electricity. Estimates suggest that between 500 million and 2 billion individuals live without power, despite the growing presence of renewable energy companies in these areas.

Zola Electric Secures $90 Million in Funding

Zola Electric, a prominent provider of renewable energy solutions, has announced the successful completion of a $90 million funding round. This new capital will facilitate expansion into new markets and further the deployment of distributed renewable energy systems.

From Solar Home Systems to a Comprehensive Energy Platform

Founded in 2011 by Erica Mackey, Xavier Helgesen, and Joshua Pierce, Zola Electric initially focused on delivering solar home solutions to rural, off-grid communities in Tanzania.

Evolving to Meet Diverse Energy Needs

The company’s strategy has undergone a transformation. According to CEO Bill Lenihan, who joined in 2015, Zola Electric recognized that a single product could not adequately serve the entirety of its target market. This market encompasses both on- and off-grid customers, as well as residential and commercial users in both rural and urban settings.

“Over 2.2 billion people globally lack access to dependable and affordable energy,” Lenihan stated. “An ‘energy ladder’ and a range of interconnected products were necessary to address the diverse challenges faced by these 2.2 billion people. Consequently, we expanded our offerings to provide increased power within these systems.”

Zola Electric has transitioned into a technology company capable of resolving energy access issues across a wide spectrum of markets.

Introducing Infinity: A Versatile Energy Solution

Last year, Zola launched Infinity, a product designed to power any home or office appliance while seamlessly integrating with various energy sources – the grid, solar power, or battery storage. This innovative system can operate with existing power grids, solar panels, and other power sources, simultaneously switching between them and storing energy.

These solutions are managed by Zola’s SaaS software system called Vision and it provides customers with data, analytics and control of their systems.   

“We now possess a comprehensive energy ladder, enabling us to address virtually any problem in any market,” Lenihan explained. “While gaps in our technology and unaddressed market segments remain, our development efforts and this new capital are focused on completing that energy ladder.”

Funding Breakdown and Strategic Partnerships

The $90 million in funding comprises $45 million in debt and $45 million in equity. The equity portion was spearheaded by TotalEnergies Ventures, the venture capital arm of TotalEnergies, alongside DBL Partners, a San Francisco-based impact VC firm; Helios Investment Partners, Africa’s largest private equity firm; Vulcan Capital, the investment vehicle of Paul Allen; Lyndon and Pete Rive, the founders of Tesla’s SolarCity; and Electron Capital Partners, a New York-based utility-focused hedge fund.

The debt financing was provided by FMO and SunFunder, both recognized for their support of solar companies in emerging markets.

Beyond Capital: Strategic Alignment and Global Impact

“This investor group offers more than just financial resources,” the CEO emphasized. “They bring strategic benefits, increased visibility, and, crucially, a demonstrated commitment to solving a global problem.”

Lenihan added that the funding will be allocated to both product development and commercial expansion. The team is particularly focused on developing next-generation digital renewable energy technologies.

Addressing the Limitations of Traditional Backup Systems

Lenihan highlighted how the Infinity product offers a solution for emerging markets where unreliable power has led to widespread reliance on backup systems like diesel generators and lead-acid batteries – solutions that are often unreliable and difficult to manage.

He described the system as a central hub for energy provisioning. Similar to an offline grid, Infinity connects to all loads within a home or business, controlling them digitally while simultaneously providing data and analytics.

“The key distinction is that existing solutions in these regions are typically backup systems. Zola provides primary power, and that’s how we differentiate ourselves.”

Current Reach and Future Expansion

Currently, over 1.5 million users benefit from Zola products across numerous African countries, including Ivory Coast, Ghana, Namibia, DRC, South Africa, Zambia, and Nigeria.

Beyond Africa, Zola has a presence in the U.S., Brazil, Pakistan, and the Philippines, with plans to extend its reach into North Africa, Asia, and South America.

Reflections on Growth and Valuation

Two key metrics from this announcement stood out: the total number of users and the growth-stage funding round without reaching a billion-dollar valuation.

While acknowledging that a little over a million customers may seem modest for a company operating for a decade, Lenihan attributed this to the nascent stage of the digital distributed energy sector and the challenges of establishing a strong on-the-ground presence.

“Simply creating technology and deploying it in a country isn’t enough,” he explained. “We require local personnel, skilled developers, integrators, and distributors who can connect with customers, address their needs, install systems, and provide ongoing service.”

This funding round follows Zola’s Series D equity round of $55 million in 2018. Lenihan clarified that this current round is not a down round, but did not disclose whether it constitutes a Series E round.

Since its inception in 2011, the company has secured over $230 million in debt and equity financing. While many startups raising this amount of venture capital would typically be valued at a billion dollars, Zola’s valuation remains undisclosed, with Lenihan stating that the company is “very valuable.”

A Vision for the Future of Energy Access

Lenihan expressed optimism that digital distributed energy will accelerate the resolution of energy challenges in emerging markets more effectively than traditional energy providers.

“This represents a different approach because initial assumptions that solar systems alone would solve energy problems in emerging markets were based on the reliability of Western technology backup systems and inverters, which haven’t proven entirely robust. We need to start from scratch, creating grid-like characteristics in these markets, with integration, modularity, and intelligence. That’s our vision.”

UPDATE: According to Zola, the figure we attributed to its total fundraise ($230 million) is inaccurate. The company says it has raised $155 million in equity with a total debt balance of $45 million.