Solfácil, a solar Fintech based in Brazil, has raised a $30 million Series B funding round led by top Fintech VC QED Investors.
According to a note from Solfácil, the round is the largest venture capital injection in the distributed solar sector in Brazil. Existing investor Valor Capital Group, which led Solfácil’s Series A, also participated in the round.
Solfácil Founder and CEO Fabio Carrara noted that QED is one of the strongest Fintech investors in the world.
“The new shareholder will bring considerable know-how to consolidate Solfácil as the leader in technology and financing for distributed solar in Brazil.”
QED Investors Partner Mike Packer commented on the funding:
“QED has been studying solar financing trends for some time and we are happy to announce our partnership with Fabio and the team at Solfácil. The solar market is just beginning to take off globally and Brazil is a particularly attractive market for growth. Solfácil is perfectly positioned to add unique value to both installers and end users, as evidenced by the terrific recent growth and the company’s ability to scale. It is a rare case where a platform can create a win-win-win dynamic: in this case between installers, solar consumers and capital markets. We are very excited to be partners on this journey and help create a juggernaut.”
Solfácil says that distributed solar will be key to ease the pressure on the power grid due to a decade of droughts while displacing fossil fuel power plants in Brazil. In the past 12 months, Solfácil reports that it has grown more than 20X, positioning the company among the three largest credit Fintechs in Brazil in terms of loan origination.
Solfácil expects to originate more than $500 million in lending by 2022.
“It is an anti-cyclical and underpenetrated sector that, despite the crisis, has grown 170% per year,” added Carrara.
Solfácil and its financing solutions solve a problem of demand but lack of access to financing. Only 0.6% of Brazilian households have rooftop solar today states Solfácil, while 93% of households express interest in having rooftop solar, only a small portion have enough savings to make the required upfront investment. Carra believes that his company will make solar energy available to all:
“The addressable market is gigantic, and we are planning to grow from 215 to 460 employees by the end of 2022.”