Tech Roundup: Startups tapping into solar power business

This week’s topics: With the water crisis, startups see growth of solar energy opportunities in Brazil. Nubank in the spotlight after giving mega pop star a board seat. And TikTok at the center of a generational battle.

Solar energy creates opportunity for startups

With water reservoirs approaching their lowest levels on record, Brazil is already feeling the first effects of an energy crisis, with utility bills becoming more expensive until November, at least. Amid the uncertainty, solar power presents itself as a cheaper and cleaner alternative, and multiple startups are looking to take advantage of the burgeoning market.

The sun is shining. A good example of the sector’s growth is Solfácil, the country’s first solar energy fintech. Created in 2018, it finances the implementation of solar generators in homes and businesses, analyzing customers’ credit scores and selecting outsourced partners to install solar panels.

• This week, the startup announced a Series B investment round led by American fund QED Investors, raising BRL 160 million (USD 32.6 million). The company wants to expand financing lines, create new services and financial products (such as a credit rural line), and improve its technology.
• The investment also will help the startup grow tenfold in 2021, expanding its credit portfolio to BRL 1 billion this year. Currently, Solfácil has BRL 300 million in financed photovoltaic panels and 10,000 consumers across more than 1,000 Brazilian municipalities.
• “Distributed solar power generation, in particular, has given consumers the opportunity to produce their own energy and has created possibilities for business models, such as startups,” says Fabio Carrara, Solfácil’s founder and CEO.

Right spot. Mr. Carrara highlights that Brazil is “one of the best countries in the world for distributed solar energy generation” and has what it takes to become an important global player.

• Three factors make Brazil a fertile...