According to a report from Tech Cabal, Hohm Energy, a South African solar company is currently not operational due to cash flow problems.
Details
According to the report, Hohm Energy has currently exercised a “business rescue” in South Africa, a process for helping financially distressed companies.
The business rescue process lasts three months, a time in which the company’s business affairs will be investigated and a meeting with creditors will be convened for further steps.
Hohm Energy has reportedly laid off a number of its employees and its CEO Tim Ohlsen has left the company.
What They’re Saying
“We are working with legal counsel to get a better understanding of a way forward, but Hohm is currently not trading,” Franc Gray, CEO of Hohm’s parent company, Spark Energy Services, told TechCabal.
Flashback
In February this year, Hohm Energy announced a $8 million seed round. The company’s main product was a solar marketplace which allowed customers to digitally determine their solar energy requirements and access loans for rooftop solar installation.
The company stated that it had generated over 17,000 custom solar rooftop designs using its solar proposal engine worth $190M, originating over $90M in finance applications to its retail banking partners.
Between The Lines
South Africa had found itself in the grip of escalating power shortages, resorting to daily electricity rationing to prevent a nationwide grid collapse.
Eskom, the state-run power generator, has acknowledged a staggering power shortfall of over 6,000 megawatts at times.
However, South Africa’s grid issues have been improved over the last few months, leading to issues for Hohm Energy as demand for solar reduced.
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