Impact Case Study: Yellow

Investor Name: Convergence Partners

Yellow is a specialized credit provider that enables consumers across five African markets to acquire small off-grid solar systems and smartphones. In 2023, CPDIF injected US$10mn in growth capital to fuel Yellow’s growth and enhance its geographic expansion. 

This investment stands as a testament to Yellow’s outstanding operational team and unique proprietary technology model, which have uniquely positioned the company to deliver its products to customers both profitably and sustainably —a notable achievement that sets Yellow apart from its competitors. Furthermore, this investment aligns closely with Convergence Partners’ commitment to impactful investing. By providing affordable credit to marginalized communities and unbanked individuals, Yellow addresses three critical development challenges in Africa: enhancing access to power, broadening broadband connectivity, offering affordable credit. Importantly, Yellow’s focus on renewable energy sources expands access to essential services without exacerbating the carbon footprint.

Overall, this represents a landmark investment for CPDIF, marking its foray into a new sector and introducing the fund to new African markets. Furthermore, the nature of this investment underscores further the evolving maturity and completeness of Africa’s private capital industry, highlighting the transition from seed and venture capital financing to growth capital infusions by private equity investors. 

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