Convergence Partners has led the Series C funding round for Yellow, a fintech providing asset-backed credit for smartphones and off-grid solar products across sub-Saharan Africa.

The investment builds on Convergence Partners’ existing relationship with Yellow and supports the company’s expansion across its key markets, including Malawi, Zambia, Uganda, Rwanda, Madagascar, the Democratic Republic of Congo and Nigeria.

Yellow employs more than 200 staff and has provided over one million customers with access to financing for smartphones and off-grid solar solutions. The company uses AI-enabled credit scoring to assess customers and provide financing for essential products.

Brandon Doyle, CEO of Convergence Partners, said the firm remained confident in Yellow’s business and management team.

“Yellow has demonstrated significant progress since our initial investment. Our decision to lead this funding round reflects our continued belief in the business, its management team and the opportunity ahead,” Doyle said.

The latest investment comes as Yellow seeks to expand its customer base and increase access to digital connectivity and electricity across African markets.

“Yellow is delighted to deepen our partnership with Convergence - the capital allows us to broaden our impact on the continent,” said Mike Heynik, CEO of Yellow. “Having recently served customer number 1 million, their investment puts us on track to achieve our target of serving 10m customers with access to electricity and internet by 2030.”

The investment is consistent with Convergence Partners’ strategy of backing technology-enabled businesses addressing access to essential services across Africa.