TLG Capital, an funding agency targeted on Sub-Saharan Africa, has supplied a credit score facility to Nigerian solar cooling firm Koolboks to assist its enlargement across African markets.
The facility will present working capital for stock purchases and assist the corporate meet rising demand for its solar-powered freezers and family home equipment.
The transaction brings TLG Capital’s complete investments in Nigerian small and medium-sized enterprises (SMEs) to $65 million across 16 companies over the previous two years.
According to a press release from the VC agency, the financing combines TLG Capital’s personal credit score with a assure from Cascador, delivered in partnership with Morgan Stanley.
It is the second transaction involving the three companions in two months, following their financing of mobility firm Drive45 in September.
TLG Capital backs enlargement plans
Isha Doshi, Co-Founder and Partner at TLG Capital, stated the funding was pushed by the demand for Koolboks’s cold-chain options across African markets.
- “Koolboks has built an incredibly innovative product that addresses critical challenges for individuals and SMEs. Its ability to scale in recent years is a testament to the ingenuity of its cold chain solution, and its ability to meet the demand across many African markets,” she stated.
Koolboks CEO Ayoola Dominic stated the financing would assist the corporate’s plans to expand cold-chain infrastructure across the continent.
He added that the power would offer the capital required to improve operations, whereas acknowledging Cascador’s assist in securing the financing.
Cascador CEO Trish Thomas stated the organisation had labored with Koolboks for a number of years, serving to the corporate strengthen its enterprise because it expanded.
She stated entry to applicable financing remained vital for growth-stage African companies and highlighted the partnership with TLG Capital as a approach to handle that want.
Koolboks expands solar cooling operations
Founded in Paris in 2018 by Ayoola Dominic and Deborah Gaël, Koolboks gives solar-powered freezers designed for companies and households in areas with unreliable electrical energy provide.
Its merchandise mix solar panels, patented ice-battery know-how and pay-as-you-go cost capabilities to present cooling throughout energy outages. The know-how presents another to diesel turbines and ice blocks for preserving meals, drinks and different perishable merchandise.
The firm operates a lease-to-own mannequin, permitting prospects to purchase its tools by means of instalment funds.
Koolboks stated it has offered greater than 15,000 items, employs roughly 400 folks across Nigeria, Kenya and Uganda, and has shipped merchandise to greater than 25 markets.
It additionally operates Koolbuy, a platform that permits prospects to buy family home equipment from main manufacturers by means of pay-as-you-go preparations.
TLG’s Nigerian funding portfolio
The Koolboks facility provides to TLG Capital’s investments in Nigerian SMEs, which now complete $65 million across 16 firms since 2024.
Following the funding, TLG stated it might proceed working with Koolboks on company governance, environmental, social and governance (ESG) monitoring, operational efficiency and strategic progress.
Cascador, which focuses on supporting growth-stage Nigerian companies, stated it has labored with 80 firms since 2019. The companies have collectively raised greater than $150 million.
TLG Capital has made greater than 70 investments and recorded over 35 exits across greater than 25 African international locations. Its flagship Africa Growth Impact Fund II targets SMEs and is backed by growth finance establishments, together with the International Finance Corporation (IFC), Norfund, Swedfund and Bpifrance.
TLG’s SMEs focus
In a current interview with Nairametrics, TLG Capital founder Zain Latif spoke on why the firm sees the SME segment as a trillion-dollar opportunity and the way versatile personal credit score is rising as a important financing device in markets the place conventional lending stays restricted.
- The agency, which has deployed greater than $250 million across African markets, stated its technique focuses on refinancing costly debt and offering progress capital to viable firms that battle to entry reasonably priced funding.
- According to Latif, TLG’s technique is backing promising companies with versatile loans that promote progress.
To do this, he stated the corporate companions carefully with native banks to determine creditworthy firms that want refinancing or enlargement capital.
