France-based Koolboks launched in 2018 with a line of coolers for European beach-goers and campers. When the Covid pandemic hit, its co-founders spotted a greater need: off-grid cooling systems for vaccine and food refrigeration in markets like Nigeria where power and cold-chains could be unreliable.
In Nigeria, “[clients] have to spend money around the clock for a generator to power their refrigerators,” Koolboks’ Ayoola Dominic told ImpactAlpha.
The company now sells solar-powered freezers, equipped with sensors for remote temperature monitoring and automation. Over 70% of its clients are female market traders who rely on the freezers to preserve the foods they sell.
“We’re empowering women and reducing multiple burdens while generating income,” Dominic said.
The startup raised $11 million in a mix of debt, equity and grants to ramp up capacity at its local manufacturing plant in Nigeria and for its refrigerator recycling program. The equity portion of its round was co-led by Nigeria-based gender-lens fund Aruwa Capital, which reupped its investment, and KawiSafi Ventures, Acumen’s climate tech venture capital firm. All On, an off-grid energy-focused fund manager launched by Shell, also participated.
French investment bank BPI France and the French Facility for Global Environment, a climate adaptation and resilience program for emerging markets backed by French development financier AFD, provided working capital debt to the company.
Productive use
Koolboks sells its refrigerators and freezers on a pay-as-you-go basis, starting at $10 per month. The company has sold more than 10,000 units in 25 countries.
Dominic says that because its clients’ livelihoods largely depend on perishable items, its systems are primarily for productive use. “It’s a major source of income for them. That’s why our default rates are extremely low,” he said – less than 3% on its portfolio.
New grant funding from the Shell Foundation and two results-based grant programs for clean energy project in Africa – Clean Energy and Energy Inclusion for Africa and Beyond the Grid Fund – is pegged to outcomes in Koolboks’ expansion efforts, including the number of new solar refrigeration users, users’ cost savings and income increases, and the amounts of CO2 emissions and food loss avoided.
Circular economy
Koolboks has also started a refurbishment program, Scrap4New, which collects and fixes discarded refrigerators and outfits them with solar panels so they work the same way Koolboks’ units do.
Grant funding from the French Facility for Global Environment, Efficiency for Access, Innovate UK and the IKEA Foundation- and UK Aid-backed Powering Renewable Energy Opportunities program will support Scrap4New, as well as the expansion of Koolbuy, Koolboks’ online marketplace.
