15 April, 2024 Member article

ElectriFI doubles down on Husk Power Systems with $4M investment, accelerating clean energy access in rural India

In a joint announcement today, Husk Power Systems (“Husk”), a leading provider of decentralised solar-hybrid mini-grids, and ARE Member ElectriFI, the EU-funded impact investment facility managed by ARE Member EDFI Management Company,  confirmed Husk’s securing of an additional $4 million in debt financing from ElectriFI. This builds upon ElectriFI’s initial $6 million investment in September 2022. 

ElectriFI’s continued support reflects Husk’s impressive performance in achieving its initial impact targets, proves the feasibility of their business model and shows experience of leadership to execute its operational targets. Significantly, Husk’s strong performance, made possible in part by ElectriFI’s initial investment, enabled them to secure additional investments in a Series D capital raise of $43 million. This exemplifies EDFI Management Company’s core goal: acting as a catalyst to unlock further private sector funding for high-impact businesses. ElectriFI’s investment served as a strong validation of Husk’s business model, attracting significant interest from other investors. 

Rodrigo Madrazo, CEO of EDFI Management Company, said of the financing: “We are thrilled to see the positive impact of ElectriFI’s investment in Husk Power Systems. Our initial investment not only provided Husk with essential capital, but also served as a strong validation of their business model, attracting further significant investment. This is a prime example of how ElectriFI fosters innovation and unlocks commercial financing for clean energy solutions in emerging markets.” 

ElectriFI’s continued investment underscores its confidence in Husk’s experienced management team. Their proven track record and effective business model position Husk for continued growth and positive social and environmental impact.  

Manoj Sinha, Co-Founder and CEO, Husk Power Systems, commented: “As demonstrated by this top-up just 18 months after receiving our first debt, ElectriFI has become an important partner for Husk. EDFI Management Company should be commended for the speed of execution in completing this transaction, which serves as a best practice for other development finance institutions (DFIs). In total, the $10 million from EDFI MC is an important enabler for Husk to scale its mini-grid footprint in India, and achieve an even greater impact on tens of thousands of lives and livelihoods.” 

Husk has successfully delivered reliable, clean electricity to remote communities, households, micro, small and medium-sized enterprises (MSMEs) and factories in rural areas without grid connection or where the grid is not providing reliable electricity.  

Corentin Billiet, Senior Investment Manager, EDFI Management Company, who led this transaction, added: “Husk’s impressive track record in delivering clean, reliable energy to remote communities is truly inspiring. We are confident that this additional investment will empower Husk to expand its reach and create a lasting positive impact on rural India. We look forward to a continued successful partnership with Husk Power Systems.”