The impact of small and medium-sized enterprises (SMEs) on the economies of countries, especially in developing regions, cannot be overemphasized. These businesses are essential for driving economic growth, job creation, and innovation. They represent approximately 90% of businesses globally, contributing over 50% of total employment, and account for up to 40% of national income (GDP).
However, many of these businesses struggle to survive due to their reliance on fuel and other harmful alternatives, which, in Sub-Saharan Africa, not only impacts their operational efficiency but also leads to frequent voltage fluctuations and power outages. These disruptions can halt production, damage equipment, and affect product quality, posing severe constraints on SMEs’ development and expansion. In 2018, 78% of firms in Africa were said to have experienced power outages, and 41% identified electricity as a major constraint to their business operations. Africa has the highest percentage of power interruptions globally; for businesses, this equates to more than 50 hrs/month and a loss of 25 days of economic activity per year.
Commercial and Industrial (C&I) solar energy has emerged as a solution capable of delivering clean, renewable electricity below grid electricity prices for commercial and industrial businesses in regions like South Asia and Africa. Large multinational enterprises have been at the forefront of installing solar systems due to their greater access to capital. However, SMEs face high upfront costs and are often considered lower-rated counterparties for financing, excluding them from these benefits. This situation has created a market gap known as the “Missing Middle“, where SMEs remain underserved in financing. This prevents them from accessing affordable renewable energy solutions that can reduce operational costs and transition them to sustainable practices.
There is no doubt that making solar energy accessible to small and medium-sized businesses and even larger corporations to save costs represents both a substantial business opportunity and a critical impact initiative. candi solar (a contraction of “Commercial AND Industrial”) is an innovative commercial and industrial (C&I) solar developer, financier, and operator for companies in emerging markets, providing them with affordable solar solutions. candi solar started with a target market of SMEs and has now expanded to businesses with significant electricity consumption.
candi solar has contracted 112MWp of solar power on 140 businesses, 93 in India and 47 in South Africa. It serves 99 customers, 69 in India and 30 in South Africa. Today, it is one of Sub-Saharan Africa’s fastest-growing C&I solar providers.
Persistent co-launched candi solar, provided investment capital and Venture Building in the critical first year of the company and continues to be involved today.
Here’s a closer look at candi solar’s journey.
candi solar partners with businesses to provide simple, end-to-end solar and battery solutions, helping those businesses reduce energy costs and adopt sustainable practices without financial strain.
Key Offerings:
candi solar’s offerings include a range of features that provide substantial benefits for businesses looking to adopt solar energy
The impact of candi solar’s work goes beyond energy provision—it is driving social and economic change in its markets in South Africa and India. By focusing on SMEs and other businesses with high electricity consumption, candi solar enables a broader range of companies to adopt solar energy, reducing operating costs and contributing to CO2 mitigation.
candi solar’s Co-Founder Fabio Eucalipto explained in an interview with Persistent, the motivation behind candi solar’s creation was to bring renewable energy to businesses that were traditionally overlooked by large C&I developers. “We saw that there was a crucial need to address CO2 mitigation by enabling smaller businesses to access renewable energy solutions,”
candi solar has created over 110 jobs and have saved and mitigated 96,346 tons of CO2. Their work supports several United Nations Sustainable Development Goals (SDGs), including affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), and industry innovation and infrastructure (SDG 9).
candi solar was launched in 2018 by Philippe Flamand and Persistent Partner Rodrigo Weiss and Principal Fabio Eucalipto, who worked closely with Philippe, developing a business plan and launching candi solar’s operations in India. Persistent also provided candi solar’s seed capital.
Working hand-in-hand, it became clear that candi needed three full-time partners to grow to its potential. After discussions among Rodrigo, Fabio, and Philippe, as well as with Persistent, it was agreed that Rodrigo and Fabio would transition to candi solar.
With the bolstering of its management team, candi solar began to take off. Fast-forward to 2024, candi solar has established a strong presence across 17 states and 2 union territories in India and 8 provinces in South Africa. It has 9 offices with over 100 employees.
Although Persistent has missed Rodrigo and Fabio, we are delighted to see candi solar prosper from a successful venture-building launch with Persistent. The close working relationship between candi solar and Persistent continued even after Rodrigo and Fabio transitioned to candi solar, with Persistent Principal Eva Stolz actively working as a Venture Builder on candi solar’s finance matters and Managing Partner Tobias Ruckstuhl doing the same on their operations. Tobias served as a Board member for more than 4 years until the recently completed Series C capital raise.
Fabio further stated, “The Venture Building support we received from Persistent gave us access to superior expert knowledge and resources at a lower cost than hiring full-time employees. Such talent and expertise would have been difficult to secure at such an early stage for candi solar.”
In May 2024, candi solar successfully closed a $38 million Series C funding round to provide capital to accelerate its growth and expand its operations. The round was led by Norfund, Kyuden International, and STOA.
Additionally, candi solar has secured an additional USD 18 million in debt funding from a climate fund managed by responsAbility Investments AG, a Swiss impact investment manager, and BIO, the Belgian Investment Company for Developing Countries. The total committed debt facility now amounts to USD 42 Million.
The company’s growth strategy focuses on expanding its clean energy footprint in these markets, with plans to finance an additional 200 MW of solar projects following this funding round.
Fabio stated that candi solar’s long-term goal is to become a leading provider of renewable energy solutions in Africa, Asia, and beyond, positioning the company as a critical player in the clean energy transition, driving both environmental and economic impact for the businesses it serves.