MPower is a platform that is accelerating the energy transition in Africa with accessible solar solutions
Business overview
| Location | Zurich, Switzerland |
|---|---|
| Social media | |
| Website | www.mpower.africa/ |
| Sectors | Energy Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | CHE-452.912.844 |
| Incorporation date | 13 Dec 2017 |
Investment summary
Business highlights
- 1 to 1 match funding from CEI Africa
- Rev U$1.9M 2023*; U$1.5M booked U$ 0.89M contracted 2024
- Built a team of 58; over 25 distribution partners
- Secured EUR9m+ in debt, grants and equity
Key features
Pitch
About the Campaign
Millions of households and businesses in Africa face unstable power and don’t have access to essential appliances. We change this by offering solar solutions to households and SMEs.Partnering with financial institutions and corporations, we offer affordable financing models.
We have grown revenues to U$ 1,9M in 2023* and reached thousands of end-users. We have built a proprietary software platform and are now ready for the next growth phase. Join us and invest in MPower’s growth and impact.
(*CHF 1.642M converted to U$ at FX rate of 1.177 as of 25/09. Based on unaudited accounts, past performance is not a reliable guide to future performance. Please refer to the Key Investment Information Sheet on the Documents tab for more financial information).
Market Opportunity
We believe that Africa's energy crisis, with > 500 million people off-grid and many more who struggle with unstable power, presents a significant investment opportunity. Reliance on diesel generators is unsustainable, creating a market ripe for solar solutions. Sub-Saharan Africa, with 11 of the top 20 fastest-growing economies, and a young, rapidly growing population offers immense potential. MPower's affordable solar technology addresses this gap, tapping into 60% of the best solar resources globally (Source: IEA’s Africa Energy Outlook 2022).
With abundant solar resources, Africa is well-placed to embrace clean energy and unlock its full potential. Our mission is to unlock solar power in Africa and to promote sustainable economic growth in Sub-Saharan Africa.
*Please see sources from Infographic added to the bottom of the page under "Sources".
Traction & Key Accomplishments
MPower has achieved significant milestones:
• Growing revenues every year, from 0 in 2017 to U$ 1.9M in 2023*
• Secured 25+ B2B partnerships with local distribution partners
• Realized projects/partnerships include UNDP, UNESCO, MTN, Barry Callebaut, Prospero & EDC
• Successfully replicated the business model in Zambia, Togo, Cameroon, Namibia, and Ghana.
• Closed equity funding of CHF 3.2M from investors including South Pole or InnoEnergy.
• Obtained CHF 5.7M in debt financing from impact funds (INOKS Capital, Trade and Development Bank, Technology Fund)
• Received CHF 1.0M in grants for high-impact projects from partners like USAID and GIZ.
• Collaborating with Prospero and EEP to bring solar electricity to rural health centres with our EnergyHubs
• Built a proprietary software platform to digitize the entire value chain
Impact accomplishments up until today:
• 10,409 tons of CO2 emissions avoided (Since 2018 and calculated by the company based on Mwh of power produced)
• 58 direct jobs and many more with the EnergyHubs
• 1231 MWh clean power generated
(*based on unaudited accounts)
Business Model
MPower generates revenue by selling solar solutions along three verticals: 1) smaller solar systems 2) back-up systems 3) projects & sourcing 4) productive power and e-mobility.
We provide inventory + consumer finance to our B2B partners and clients to facilitate uptake. To mitigate risks we diversify our product portfolio and collaborate with institutional off-takers.
Our customer acquisition strategy leverages local distributors and partnerships, reducing costs and expanding reach.
Use of Funds
Funds will be allocated to:
• Expanding distribution network (40%): Strengthening our presence and B2B partnerships in existing and new markets.
• Diversifying product portfolio (30%): Inventory purchase introducing solar pumps, solar-run air conditioning, and e-mobility solutions.
• Developing financing offers (30%): Enhancing third-party financing and micro-lending to make solar solutions accessible to all demographics. This funding will drive growth and expand our market presence.
Sources referring to the Energy infographic above:
Energy Infographic sources:
• 590 million+ lack of access to electricity:
International Energy Agency (IEA), 2022. Africa Energy Outlook 2022: Key Findings. Available at: https://www.iea.org/reports/africa-energy-outlo... .
• Expected 4% GDP growth in Sub-Saharan countries by 2025:
International Monetary Fund (IMF), 2024. Regional Economic Outlook for Sub-Saharan Africa, April 2024. Available at: https://www.imf.org/en/Publications/REO/SSA/Iss...
• Up to 31% economic loss:
Center for Global Development (CGD), 2024. New Study: Sub-Saharan African Countries’ Unreliable Power Outages Cost Companies as Much as 31%. Available at: https://www.cgdev.org/article/new-study-sub-sah...
• Falling prices of battery packs with since 2010:
IRENA, 2020. Solar PV costs fall 82% over the last decade, says IRENA. Available at: https://www.solarpowerportal.co.uk/solar_pv_cos...
BloombergNEF, 2022. Battery pack prices fall to an average of $132/kWh, but rising commodity prices start to bite. Available at: https://about.bnef.com/blog/battery-pack-prices...
• 3% Growth in Energy Demand:
ESI Africa, 2024. Loadshedding casts long shadow over Africa’s electricity demand growth. Available at: https://www.esi-africa.com/industry-sectors/tra...
International Energy Agency (IEA), 2024. Electricity 2024: Analysis and forecast to 2026. Available at: https://iea.blob.core.windows.net/assets/18f3ed...
• 1.7 % installed solar capacity in Africa:
Development Reimagined, 2023. Exploring Africa’s Renewable Solar Power Potential in 2023. Available at: https://developmentreimagined.com/infographic-e...
Key Information
Share classes:
All investors in this round will receive Preferred A2 Shares, please find information concerning share classes below:
Preferred A2 Shares as defined in the shareholders' agreement:
- First, priority 1x non-participating preference (see further below).
- Voting rights
- Dividend rights
- Broad-based weighted average anti-dilution, with a valuation floor of CHF 5m
Preferred A1 Shares:
- Second priority 1x non-participating preference (see further below).
- Voting rights
- Dividend rights
Preferred Seed Shares:
- Third priority 1x non-participating preference (see further below).
- Voting rights
- Dividend rights
Ordinary Shares:
- Capital distribution rights out of any proceeds left over after the first priority, second priority and third priority preferences above have been satisfied
- Voting rights
- Dividend rights
Preference:
- On the Company’s liquidation, sale, reorganisation, IPO, merger or change of control, the Preferred A2 Shareholders, the Preferred A1 Shareholders and the Preferred Seed Shareholders will receive the following out of the distributable proceeds:
- (i) First, the Preferred A2 Shareholders will receive the higher of:
- The value of their original investment, less any distributions (dividends etc); or
- The amount payable if the capital distribution was divided equally between all shareholders pro rata to the nominal value of their respective shareholding
- (ii) Second, once (i) above has been satisfied, the Preferred A1 Shareholders will receive the higher of:
- The value of their original investment, less any distributions (dividends etc); or
- The amount payable if the capital distribution was divided equally between all shareholders pro rata to the nominal value of their respective shareholding.
(iii) Third, once (i) and (ii) above have been satisfied, the Preferred Seed Shareholders will receive the higher of:
- The value of their original investment, less any distributions (dividends etc); or
- The amount payable if the capital distribution was divided equally between all shareholders pro rata to the nominal value of their respective shareholding
- (iii) Lastly, once (i), (ii) and (iii) have been satisfied in full, any remaining proceeds will be distributed equally to the Ordinary Shareholders.
Group Structure:
Investors in this round are investing in and will become MPower Ventures AG (Switzerland) shareholders. This is the holding company for the following
subsidiaries:
• MPower Zambia
• MPower Togo
• MPower Namibia
• MPower Cameroon
• MPower Spain
Material Debt:
The company has the following outstanding loans:
1. CHF 375,000 loan at an interest rate of 1.63% per annum. The loan was taken out on June 5th, 2019 and is to be repaid on February 12th, 2027.
2. CHF 225,000 loan at an interest rate of 1.43% per annum. The loan was taken out on October 1st, 2019 is to be repaid on February 12th, 2027.
3. CHF 375,000 loan at an interest rate of 1.45% per annum. The loan was taken out on May 20th, 2020 and is to be repaid on February 12th, 2027.
4. CHF 375,000 loan at an interest rate of 1.35% per annum. The loan was taken out on September 24th, 2020. CHF 150,000 is to be repaid on October 14th , 2024 and CHF 225,000 is to be repaid on February 12th, 2027.
5. CHF 31,622 Covid19 loan at an interest rate of 0% per annum. The loan was taken out on March 27th, 2020 and is to be repaid in equal instalments quarterly until March 27th, 2025.
6. CHF 37,500 Covid19 loan at an interest rate of 0.5% per annum. The loan was taken out on March 1st, 2021 and is to be repaid in yearly instalments until September 30th, 2024.
7. CHF 400,000 Start-Up Loan at an interest rate of 3% per annum. The loan was taken out on March 20th, 2021. CHF 50,000 is to be repaid in March 2025, CHF 50,000 is to be repaid in June 2025, CHF 100,000 is to be repaid in Q3 September 2025, CHF 100,000 is to be repaid in December 2025, and CHF 100,000 is to be repaid in March, 2026.
8. EUR 272,400 subordinated loan at an interest rate of 5% per annum. The loan was taken out on January 1st, 2021. Repayment will start in equal instalments yearly from October 31st, 2024 until October 31st, 2026.
9. USD 500,000 subordinated loan at an interest rate of 4.5% per annum. The loan was taken out on October 7th 2021. USD 250,000 is to be repaid in September 2024 and USD 250,000 is to be repaid on March 14, 2025.
10. EUR 250,000 subordinated loan at an interest rate of 6% per annum. The loan was taken out in May 2024. Repayment will start in equal instalments yearly from March 31st, 2025 until March 31st, 2029.
11. EUR 100,000 loan at an interest rate of 8 % per annum. The loan was taken out on May 30th 2024. Repayment will be in December, 31st 2024.
Furthermore, MPower has access to a EUR 2,000,000 working capital loan, currently CHF 26,668 taken out in July 2024 are to be repaid until December, 31st 2024.
Local subsidiaries have entered and will possibly enter into separate loan agreements.
MPower is currently in discussion with Klimja to launch a campaign for a subordinated loan at an interest rate of 6% per annum. If the campaign is successful, repayment would start in equal instalments 9 months after signing. The loan term would be 5 years.
The funds raised from this investment round will not be used to repay these loans.
Exchange rate:
Direct investments in the round from investors outside of Seedrs investing 560,000 Swiss Franc are reflected in the campaign at an indicative exchange rate of 1:1.04281 GBP to CHF. An additional investment of €500,000 is reflected in the campaign at an indicative exchange rate of 1:1.20481 GBP to EUR. Investments on Seedrs are in GBP.
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