Charm Impact, a UK-based lender to renewable-energy firms in developing countries, recently raised GBP 274,000 (USD 360,000) in equity financing through the UK-based crowdfunding platform Crowdcube. Charm plans to use the funds to scale up its operations over the next three years as well as to become regulated by the UK’s Financial Conduct Authority.
“For the energy access sector to truly scale over the long term, there is a dire need to support the advancement of early-stage, locally owned companies,” said Charm co-founder Gavriel Landau. “Charm is uniquely positioned to support these businesses and accelerate growth of the companies that will become an investable pipeline for later-stage investors.”
The firm has lent to five early-stage clean energy companies in India and Nigeria. These investees provide solar electricity for health clinics, garment production, refrigeration and other purposes. The loans have terms of up to 36 months, are sized from GBP 7,850 (USD 10,400) to GBP 23,000 (USD 30,500) and carry annual interest rates of 6 percent to 8 percent.
Founded in 2018, Charm has been funded by Innovate UK’s Energy Catalyst program, a program of the UK government supporting energy innovation in Africa and Asia; Energy 4 Impact’s Crowd Power initiative, a UK-based crowdfunding platform specializing in energy access in emerging economies; and the Good Energies Foundation, a Switzerland-based foundation investing in renewable energy.
By Kate Finster, Research Associate
Sources and Additional Resources
Charm Impact press release
https://charmimpact.medium.com/charm-impact-raises-nearly-300-000-in-equity-to-scale-local-energy-access-entrepreneurs-in-africa-276041164a4e
Charm Impact homepage
https://charmimpact.com
Crowdcube homepage
https://www.crowdcube.com
Energy 4 Impact homepage
https://www.energy4impact.org
Good Energies Foundation homepage
https://www.goodenergies.org
Innovate UK’s Energy Catalyst homepage
https://www.gov.uk/guidance/energy-catalyst-what-it-is-and-how-to-apply-for-funding
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