As the report notes, about 600 million homes in Africa still don’t have access to reliable energy. “The application of renewable energy technology has the potential to bridge this gap, with a surge of startups emerging with innovative solutions and approaches,” said the report.

Over Sh15 billion was invested into startups in the off-grid sector in 2020, said the report with the vast majority of funded startups in off-grid tech deploying solar fintech solutions. A notable deal in 2020 was by Kenya-based clean energy leasing company Solarise which raised a Sh1billion Series B funding round to scale further across the continent.

Series B rounds help take the business past the development stage enabling it to deepen market reach. According to the report, off-grid tech startups raise larger rounds as it is capital intensive to reach scale and the slow path to profitability for business models typically built around providing access to power to low-income populations via pay-as-you-go services, said the report.

The report shows that VC deals in the health technology sector were more diversified geographically compared to previous years.

Read more: The Standard