Husk Power Plans $400 Million Fundraising and IPO in 2025

Husk Power Systems, recognized as the world’s largest solar mini-grid operator, is planning to raise up to $400 million in debt and equity this year to support its expansion in India and Africa—a record-breaking goal for the industry.

This funding round, comprising both equity and debt, is intended to bolster the company ahead of its anticipated initial public offering in 2027. The company experienced significant growth last year, more than doubling its revenue and increasing its operational mini-grids from 200 to 400.

Manoj Sinha, Husk’s co-founder and CEO, emphasized the capital’s importance for scaling the business: “We need this capital to align with our ambitions of achieving 150% year-over-year growth,” he explained from Fort Collins, Colorado, where he is based. He highlighted the capital-intensive nature of their operations.

Founded in 2008 in Bihar, India, Husk is benefiting from initiatives by governments and institutions like the World Bank to expand electricity access to over 600 million people across Africa who remain without power.

In late January, the World Bank and the African Development Bank will host a conference in Tanzania aimed at securing further investment for an initiative that already has $30 billion in commitments for 2030.

Previously, Husk raised $103 million in a Series D funding round in 2023. The company now seeks contributions from both existing and new investors to finance its ambitious expansion, aiming for similar revenue growth in 2024. Past investors include France’s STOA Infra & Energy SAS, the US International Development Finance Corp., and Shell Ventures BV.

“We’re seeking investors capable of contributing $50 million to $100 million individually,” Sinha noted. He mentioned that the company is weighing public listing options in both India and the US.

While 80% of Husk’s mini-grids are currently based in India, the remainder operate in Nigeria, where favorable policies have stimulated industry growth. The company aims to enter the Democratic Republic of Congo in 2025 and is exploring acquisitions in Benin and Madagascar.

Most of Husk’s mini-grids range between 50 and 100 kilowatts and primarily utilize solar panels and battery storage, with diesel generators serving as backups during peak demand or adverse weather. In India, some systems also incorporate biomass as a backup, and Husk is exploring biogas-based compressed natural gas options. Sinha reported that 92% of the company’s energy output is from renewable sources.

Customers prepay for electricity via a mobile app, and Husk additionally generates revenue through carbon offset sales.

Over the past year, the company launched its PRISM product, which enables faster deployment of mini-grids by delivering pre-assembled systems to sites. Husk has also begun constructing its first interconnected mini-grids, each with capacities between one and two megawatts.