Qotto has announced that it has raised Euro 8 million in a Series A funding round that was led by IBL group. The Off-Grid Energy Access Fund (FEI-OGEF) and Cordaid also joined hands with the lead investor, alongside Qotto’s existing shareholders.
Founded in 2016, Qotto designs and distributes stand-alone solar kits suited to the needs of people in rural and peri-urban areas in Africa. It currently operates in Benin and Burkina Faso and will expand, through this round of founding, to Ivory Coast and East Africa.
Qotto is scaling an improved and more efficient model of solar home systems including additional revenue streams and services, targeting the rural and peri urban consumer. The business model developed by Qotto aims to scale their solar off grid presence with two other product lines: internet access hotspots and financial services. It will do so by leveraging its proprietary technology stack integrating IoT, fintech and cleantech solution to its clients.
Qotto has registered a 50% Year on Year revenue growth with an active customer base of 11,000 at the end of year 2022. The financing arrangement is a mix of debt and equity, the proceeds of which Qotto, will use to support and scale operations in West Africa. It will extend its geographic footprint, and reach 25,000 customers by the end of 2023.
“We welcome the new investors and are thrilled to scale our triple play model, leveraging our modular off-grid solar home systems, to offer internet connectivity and a host of financial services to our clients in the near future. Our innovative solutions will benefit greatly from IBL’s 100 years of industrial and commercial experience in Africa- the investment of such a partner confirms the scalability and relevance of our business model designed to bring essential services to rural Africans. “ said Jean-Baptiste Lenoir, President, and Co-founder of Qotto.
In addition to the capital investment in this series A round and leveraging IBL group’s expertise in scaling business in Africa, Qotto and IBL group, have signed a partnership and agreed to offer Qotto’s off-grid solutions in the East African market.
StratLink Africa was the exclusive sell-side advisor of the transaction with the support of Africa Enterprise Challenge Fund (AECF).