Kenyan climate-fintech platform Peercarbon aims to help SMEs integrate sustainability into their operations, by cutting emissions and accessing green finance.
Founded in 2023, Peercarbon offers science-based tools to enable businesses to measure, manage and reduce their CO2 emissions, and then connects these businesses with lenders who prioritise green finance.
“This solution empowers finance providers to facilitate green transition financing for SMEs while fostering an ecosystem that supports businesses in their sustainability efforts,” Raymond Maiyo, Peercarbon’s co-founder and CEO, told Disrupt Africa.
Maiyo and co-founder Glenn Digollo had previously been at the helm of Fuelytica, a startup that specialised in fuel management, but decided to pivot its focus towards addressing the need for tools that can measure the impact of emissions.
“All businesses cannot effectively manage what they cannot quantify,” Maiyo said, describing how the journey began with Peercarbon developing carbon accounting software specifically designed for oil marketing companies.
“This software was streamlined, and aided in mitigating emissions. As time passed, we expanded our influence beyond this scope,” said Maiyo.
The startup now strives to integrate sustainability into financial practices across various sectors, having recognised a substantial gap in the market for accessible and user-friendly climate fintech solutions, specifically tailored for SMEs in Africa.
“Traditional, Excel-based methods of carbon accounting and sustainability reporting proved complex, expensive, and unsuitable for smaller businesses. Understanding that SMEs constitute over 90 per cent of all businesses worldwide, we deemed it imperative to involve them in the transition to a greener, more sustainable future,” said Maiyo.
Peercarbon places carbon accounting and impact assessment at the core of its fintech platform. These tools empower finance providers to structure and service green finance products for business customers, allowing them to report the impact of the financing to stakeholders.
“We believe that sustainability-linked finance is a pivotal catalyst for action – SMEs receive the necessary financing to grow, coupled with a known financial incentive to become more sustainable,” Maiyo said.
In its initial phase, Peercarbon has operated on a lean startup model, self-financing operations for a year before securing crucial funds from close connections. This approach enabled the founders to adapt and refine their strategy based on real-market feedback. Currently, it is actively raising a pre-seed round from institutional investors with an appetite for impact.
That will help the startup expand, with Peercarbon having gained substantial traction in its early stages. The software is actively utilised by a focus group of SMEs.
“These SMEs are eager to leverage the platform to access green finance for transitioning into more sustainable operations. An encouraging sign is the existence of a qualified lead list of 200 schools for the programme post-PoC,” Maiyo said.
Peercarbon has also garnered interest from impact lenders, willing to participate in the Peercarbon ecosystem as lenders with soft commitments amounting to US$300,000.
“This reflects the practicality and acceptance of Peercarbon’s offerings in the sustainable finance landscape,” Maiyo said.
“The early indicators of commitment from industry players and the positive response from SMEs underscore Peercarbon’s potential impact in driving sustainability through its innovative solutions.”
The company has made significant headway in the Kenyan and Tanzanian markets, but envisions scaling its operations to cover a broader geographical scope within Africa.
