Acumen has raised $246.5 million from global investors to fund its off-grid solar H2R platform
H2R targets electricity access for 70 million people across 17 nations, including first-time energy users in Sub-Saharan Africa
Through its Catalyze and Amplify strategies, H2R deploys blended finance for enterprises working to expand off-grid solar models
Venture capital firm Acumen has raised $246.5 million from a host of international investors and lenders to fund its off-grid solar financing platform, Hardest-to-Reach (H2R), focused on Sub-Saharan Africa.
Contributing to the initiative in this financing round are Green Climate Fund (GCF), International Finance Corporation (IFC), Shinhan Bank, Nordic Development Fund, British International Investment (BII), Soros Economic Development Fund (SEDF), Signify Foundation, and ImpactAssets. In October 2024, Acumen raised $25 million from the IFC (see Middle East & Africa Solar PV News Snippets).
Launched at COP28 in 2023, H2R aims to reach close to 70 million people across 17 nations, including 1st time energy users in areas with some of the lowest electrification rates in the world.
It is designed to support the aim through H2R Amplify, which is a debt vehicle that provides impact-linked loans to enterprises to expand proven models in underserved and higher-risk markets. The other component, H2R Catalyze, uses a mix of equity, debt, grants, and technical assistance to enterprises navigating fragile markets.
So far, H2R Catalyze has deployed more than $10 million in 7 companies, including Yellow Malawi, RDG Collective, and KIMS Microfinance.
According to the World Bank, in 2023, 600 million Sub-Saharan Africans still lacked access to electricity. The bank sees off-grid solar as the most cost-effective way to provide electricity access to nearly 400 million people globally by 2030 (see Off-Grid Solar May Power 400 Million Globally By 2030, Says World Bank).
“At a time when many are pulling back, this coalition is stepping up with capital designed not just to invest, but to solve,” said Acumen’s Founder and CEO, Jacqueline Novogratz. “This is the first time public, private, and philanthropic partners have come together behind a model built to reach the hardest-to-reach. It’s a clear example of what’s possible when capital aligns with purpose to tackle energy poverty at scale.”