Based in Benin and Burkina Faso, Qotto hopes to raise a total of $6.9 million.
The French company wants to sell its kits to 50,000 people who do not have access to electricity in
West.
In an abundant African market, the French start managed to raise the sum, significant for the continent, of 6 million dollars. These kits allow
inhabitants of villages not connected to the electricity grid to light up, charge their phones, watch the
television or access to the Internet, all thanks to solar panels installed on their roofs and
associated with a battery. The start-up is active in Benin and Burkina Faso.
In sub-Saharan Africa, electricity needs are glaring and growing year by year. Near
650 million people do not have access to electricity, according to a study by the Institut Montaigne. Des
regulatory and financial obstacles slow down the connection of a majority of the African population
to the electricity grid. In addition, the latter is sometimes faulty.
Like other start-ups launching in Africa, Qotto faced funding problems.
Although one of its co-founders, Fabrice de Gaudemar, worked in investment for fourteen
Years, especially at Eurazeo, his fundraising has proved difficult. It must be said that French
is particularly underserved in terms of venture capital. The French< French< African country that lifted the br/> more funds in 2019, namely Senegal, raised only $16 million for its start-ups, according to
Partech.
Customers with low creditworthiness
Qotto had to fall back on subsidies or debt. Regarding the former, the start Raised $700,000 from AECF, a multi
-funded development organization worldwide, and $1.8 million through the Millennium Challenge Corporation, a b American development. On the debt side, Qotto raised $2 million from the fund
Ogef (Off-Grid Energy Access Fund), mainly financed by the African Development Bank. La
Start-up is still in the process of completing a capital increase that could amount to 2.4 million
dollars, from business angels or individuals, who can invest through the platform
Sowefund. In total, $6 million has already been secured, and Qotto hopes to secure $6.9 million.
Aimed at populations with small financial means, entrepreneurs Fabrice de Gaudemar and
Jean-Baptiste Lenoir have chosen to monetize their solar kits in the form of leasing. "We are asking for a
prior payment of 30,000 CFA francs, or 35 euros, then our customers pay us 0.75 euro per day for three years, after which the solar kits belong to them," they explain
A modular
system The company relies on a more modular system than that of its competitors. "Our customers can
start with energy, then improve the service by connecting to wi-fi or adding a TV," according to
both entrepreneurs. Qotto even plans to offer financial services to its customers, who
could pay more for life insurance or a project savings account. "It's a region where people are not used to being taken care of," says Fabrice de Gaudemar. When they
see that the system works and that they can trust us, some ask us if we can
manage their money. »
The risks inherent in the start-up model are, on the one hand, cash advance needs and, on the other
part, the solvency of customers. However, if Qotto manages to build a base of customers who pay
regularly - he now has 10,000 and estimates that this levy will allow him to go and get some
50,000 -, the start-up will be able to capitalize on it by offering them new services. A good calculation, according to
Tidjane Dème, general partner at Partech, who believes that "the value of these models lies in the < / > network of users whose ability to pay is seen, because at that time, start-ups will be able to provide
things other than solar kits." Eventually, entrepreneurs see their start-up running on a
platform model, whose role would be to connect hardware suppliers, technicians
locals and customers.