Qotto, a French provider of solar solutions, has raised €8 million from the IBL Group, business angels, and the Off-Grid Energy Access Fund (FEI-OGEF) managed by Lion's Head Capital and Cordaid Investment Management. The funds will help Qotto expand its operations in West Africa, where it designs and sells solar kits.
Qotto's autonomous solar kits are monetized through leasing, spread out over three years, with payment made through mobile money. The solar kits are targeted at rural populations, and the company's technology enables access to reliable electricity, internet, and financial services.
In 2022, Qotto achieved annual revenue growth of 50%, with 11,000 customers and more than 200 employees. The company was founded in 2016 by Fabrice de Gaudemar and Jean-Baptiste Lenoir, and it operates in Benin and Burkina Faso.
The IBL Group is a Mauritius-based company with interests in a range of industries, including financial services, agribusiness, and logistics. The Off-Grid Energy Access Fund is a Mauritius-based impact investment fund that provides financing to companies operating in the off-grid energy sector.
Qotto's funding round was facilitated by 2CFinance, which conducted the financial due diligence for the acquisition. The French firm specializes in transaction services, including mergers and acquisitions, fundraising, and debt advisory.
The need for electricity in sub-Saharan Africa is significant and growing. According to a study by the Institut Montaigne, nearly 650 million people lack access to electricity due to the complexity and cost of installation. Population growth, unstable policies, and natural disasters are among the factors holding back development in the region.
Qotto's technology has the potential to address this challenge by providing reliable access to electricity, internet, and financial services. The company's growth and success highlight the potential for innovative solutions to drive progress in the region and create opportunities for economic development.
