Open Access Energy (OAE), a South African startup specializing in energy management software, has secured a $750,000 investment from Factor E Ventures, marking the first phase of its $1.5 million seed round.
The software company stated that this initial funding will be directed toward addressing the severe energy deficiency in the southern African nation by enhancing the distribution and management of renewable energy.
Factor E Ventures’ investment comes at a pivotal moment for both the company and the country.
South Africa’s energy sector is currently grappling with significant challenges, including high costs and grid instability. According to OAE, their approach could play a vital role in the nation’s shift towards a more sustainable and decentralized energy system.
Gerjo Hoffman, CEO of Open Access Energy, remarked, “Factor E Ventures’ investment comes at a crucial time for both our company and South Africa’s energy sector as we work to decentralize energy and ensure universal access to clean power for all South Africans. This support will accelerate our innovation capabilities and market reach.”
The energy startup plans to refine its software solutions to enhance technological capabilities, scale operations, improve software platforms, and increase market presence in South Africa and the Southern African Development Community (SADC) region.
EOAE’s software platforms, Amptera and Energypro, are crafted to enable real-time energy transactions and improve energy management for IPPs and municipalities that have been previously constrained by the country’s reliance on coal-fired power generation.
By linking electricity generated from distributed renewable sources with regions experiencing unmet demand, the company’s technology brings multiple advantages, such as enhanced grid stability, increased affordability, and the promotion of cleaner, more efficient energy solutions. Additionally, it opens up new revenue opportunities for independent power producers (IPPs).
We are thrilled to spearhead this initial investment in their $1.5 million seed round. OAE is uniquely positioned to address the country’s energy challenges and propel its shift towards renewable sources. Our backing underscores our confidence in their ability to make a significant impact,” said Tenbite Ermias, Partner at Factor E Ventures.
Founded in 2021, OAE aims to establish itself as a leading force in the energy management industry, leveraging this funding round to reach that goal. As South Africa accelerates its transition to renewable energy and distributed generation, OAE’s technology is poised to play a pivotal role, providing essential tools for energy market participants to navigate and succeed in the changing landscape.
