Odyssey Energy Solutions Raises $74 Million to Bridge the Financing Gap for Renewable Energy SMEs

For small renewable energy businesses, financing often becomes a critical hurdle before a project can even begin. Companies must first purchase solar panels, batteries, or inverters and complete the installation work before receiving payment from their clients. It is precisely this working capital need that Odyssey Energy Solutions aims to address.

The U.S.-based company, which specializes in financing decentralized renewable energy in emerging markets, announced on September 1st that it has raised $74 million. This capital is split between $27 million in equity and **$47 million in debt. These resources are intended to support its expansion across Africa, Asia, and Latin America, while strengthening the financing solutions offered to small and medium-sized developers and installers.

Addressing a Concrete Market Need

Odyssey’s model responds to a specific industry challenge: many small and medium-sized enterprises (SMEs) in the sector have secured projects and clients but lack the necessary working capital to procure upstream equipment. Furthermore, access to traditional bank credit remains difficult for younger companies, which often have limited financial history or insufficient collateral.

A Particularly Acute Need in Africa

The African market continues to face a significant financing deficit. According to the International Energy Agency (IEA), less than $2.5 billion was committed in 2023 for new electricity connections in sub-Saharan Africa. However, decentralized solutions, such as mini-grids and standalone solar systems, saw a 20% increase in financing between 2019 and 2023.

The IEA highlights a key difficulty for small businesses: equity investments remain concentrated among mature players, while companies in the development phase struggle to secure the capital needed to grow and build a portfolio of financeable projects.

Odyssey is already active in this segment. In 2023, the company signed an agreement in Nigeria that could mobilize up to $100 million in equipment financing for local solar companies. With its new funding envelope, Odyssey now intends to expand this type of financing, enabling more SMEs to move from signed projects to active construction sites.