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Cape Town-based Yellow, a consumer finance company in Africa that offers pay-to-own plans for smartphones and solar energy systems, has completed a Series C funding round led by Convergence Partners, with participation from Susquehanna Sustainable Investments.
However, the amount raised has not been disclosed.
Founded in 2018 by Mike Heyink and Maya Stewart in Malawi, Yellow finances essential products for households that cannot afford to pay upfront, offering flexible instalment plans for off-grid solar home systems and smartphones.
The company now operates across seven African markets, including Malawi, Zambia, Uganda, Rwanda, Madagascar, the Democratic Republic of Congo, and Nigeria.
Till date, it has served more than one million customers through a network of over 1,500 local agents. Its smartphone business has more than doubled year-on-year.
“For us, this round is about more than just raising capital. It reflects confidence in the business we have built, the progress we have made, and the scale of the opportunity still ahead,” says the company.
The Series C follows a $14 million Series B in 2023 also led by Convergence Partners, with participation from Triple Jump’s Energy Entrepreneurs Growth Fund and Platform Investment Partners.
The company employs more than 200 people and is targeting 10 million customers by 2030.
“Yellow is delighted to deepen our partnership with Convergence – the capital allows us to broaden our impact on the continent,” said Mike Heynik, CEO of Yellow. “Having recently served customer number 1 million, their investment puts us on track to achieve our target of serving 10m customers with access to electricity and internet by 2030.”
The funding will help Yellow grow its smartphone and solar businesses, enter new markets, and create the necessary infrastructure to serve more customers.
Yellow focuses on making essential products affordable for low-income households by allowing payment plans instead of requiring full upfront payments.
Convergence Partners Energy Finance (CPEF) is a financial organisation that provides funding for growth-stage businesses in Africa’s energy technology sector.
Based in Mauritius, it offers mezzanine and structured capital that works like equity, helping companies grow without losing ownership or control too early.
Susquehanna Sustainable Investments (SSI) focuses on investing in early-stage companies that leverage technology to create a positive environmental impact.
The firm is backed by the owners of Susquehanna International Group, LLP, who possess significant experience in global markets and various investment strategies.
With a team of over 3,500 employees skilled in technology, data science, and risk management, SSI provides patient and flexible capital to support these innovative companies.
