Kenyan renewable energy startup Hydrobox has secured $9 million in debt financing from FMO, the Dutch entrepreneurial development bank, to enhance rural electrification through its innovative mini-grid projects.
The funds will enable Hydrobox to scale up the development of eight hydro-powered mini-grids, designed to provide reliable and affordable electricity to underserved communities in Kenya. These mini-grids integrate small-scale hydroelectric plants with Internet of Things (IoT) technology to optimize performance and ensure operational efficiency.
With this investment, Hydrobox aims to address the persistent challenge of rural electrification in Kenya, where only 50% of the rural population has consistent access to electricity, according to World Bank data. The company’s decentralized, sustainable energy solutions are reshaping Kenya’s energy landscape and aligning with the country’s Vision 2030 goals for renewable energy and universal electricity access.
Since its inception, Hydrobox has powered over 10,000 homes and small businesses, delivering not just electricity but also transformative opportunities. Reliable energy improves access to education, healthcare, and entrepreneurship, fostering safer and healthier living environments.
“Our partnership with reference investors FMO and ElectriFI serves as a quality label and recognition for the hard work our team has put in over the last few years. With strong partners on board and a substantial pipeline of upcoming projects in Kenya and the DRC, we are well-positioned to make a meaningful impact on energy access across Africa, aiming to reach 1,000,000 end-users by 2030. We thank everyone who has believed in and supported our journey,” said Thomas Poelmans, CEO and co-founder of Hydrobox.
The use of IoT-driven technology in Hydrobox’s mini-grids allows for real-time monitoring and management, reducing downtime and enhancing efficiency. By tapping into Kenya’s abundant water resources.
Hydrobox is creating a scalable model for clean energy production, potentially serving as a blueprint for other African nations striving to bridge their energy gaps.This latest funding underscores Hydrobox’s commitment to building a sustainable energy future.