A startup called Koolboks, which develops non-electric refrigeration systems and provides affordable cold storage options to companies all throughout Africa, has secured $2.5 million in initial money.
With participation from Acumen, Blue Earth Capital, All On, GSMA, and other investors, the round was headed by the Nigerian growth equity fund Aruwa Capital Management. Since Ayoola Dominic and Deborah Gael started Koolboks in 2018, they have raised $3.5 million.
At the moment, Koolboks’ first offering was simply an outdoor refrigerator for campers throughout Europe.
However, the France-based startup with an African focus shifted its attention in 2020 to business owners in off-grid regions of Africa and emerging markets, beginning with Nigeria.
Dominic, the co-founder, and CEO of the startup Koolboks said that the goal of the business was to alter how cooling is seen throughout the world.
Koolboks had previously gotten their start in the European camping scene. Despite some initial success, it didn’t take long to realize that the technology might have a greater influence on those who needed it most.
Since 40% of their food spoils even before it reaches the market, these folks struggle to feed their families. Some people work long hours to save up enough money to buy food supplies, only toss, them out the next day due to lack of refrigeration.
Dominic claims that Koolboks freezers use the sun’s copious water supply in Africa to produce refrigeration for up to four days even in the lack of power. A standard Koolboks unit has two LED light bulbs and USB ports for charging smartphones, so it may be used as a refrigerator, freezer, or lighting.
The Paris- and Lagos-based company uses a pay-as-you-go business model that enables these people and small enterprises, like fish vendors, to buy one of its 110- to 1,000-liter off-grid solar coolers for $10 to $20 each month.
They pay using their mobile devices or a nearby POS agent; they receive tokens inserted as codes into the refrigerator, which they then utilize for a set amount of time.
According to the CEO, the four-year-old business currently sells in 18 different nations. A total of 13 of these markets Benin, Burkina Faso, Democratic Republic of the Congo (DRC), Ghana, Ivory Coast, Kenya, Liberia, Nigeria, Madagascar, Mozambique, Rwanda, Senegal, and Sierra Leone are in sub-Saharan Africa.
Only Nigeria and Kenya, where a branch office was only built last month, are home to the company’s physical locations. Dominic stated that Koolboks is also interested in opening offices in the DRC and Ivory Coast.
Koolboks will use the funds to establish a staff to assist its expanding B2C company and create a local assembly facility as part of its expansion across Nigeria.
Additionally, it will aid in the business’ scaling up and development into other areas. The company has approximately 3,000 unique consumers across all geographies. Dominic states that in the first two months of this year, Koolboks completed every transaction that was recorded in 2021.
Techbuild’s Take
Africa’s unpredictable and patchy electricity grid distribution has an impact on both rural and urban people and companies.
Irregular electricity hinders the expansion of local companies that sell perishables, frozen goods, and beverages, such as restaurants and grocery stores. Some of them use expensive and hazardous diesel generators to supply electricity.
Africa experiences regular power outages. Solar refrigerators are without a doubt the best option for Africa. Even if there is no electricity, food and other products would still stay cold since they would be powered by solar energy.
It is the most dependable and pure kind of energy, making it an excellent fit for Africa, and it runs solely on solar power. Since it has established a market in Africa and is receiving funding to expand, Koolboks is aware of this.
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