The Kenyan climate-fintech platform, Peercarbon, is on a mission to enable SMEs to incorporate sustainability into their operations by reducing emissions and gaining access to green financing.
Launched in 2023, Peercarbon provides scientific tools to help businesses quantify, control, and minimize their CO2 emissions. It then bridges these businesses with financing institutions that focus on green investments.
Raymond Maiyo, Peercarbon’s co-founder and CEO, explained to Disrupt Africa that their solution offers finance providers a way to support the green transition for SMEs, thereby promoting an ecosystem conducive to business sustainability efforts.
Maiyo, along with co-founder Glenn Digollo, previously led Fuelytica, a startup focused on fuel management solutions. They shifted their focus to meet the demand for reliable emission measurement tools.
Maiyo emphasized the importance of measurable data in effective management. He recounted Peercarbon’s beginnings with the development of carbon accounting software tailored for oil marketing companies, which proved instrumental in reducing emissions. Over time, Peercarbon broadened its reach, aiming to make a more significant impact.
Peercarbon is on a mission to embed sustainability within the financial practices of various industries, identifying a significant need for accessible, user-friendly climate fintech solutions designed specifically for SMEs in Africa.
Recognizing the limitations of traditional, Excel-based carbon accounting and sustainability reporting methods — which are often complex, costly, and not suited for small businesses — Maiyo highlighted the critical role of SMEs, which make up over 90% of businesses globally, in moving towards a more sustainable future.
At the heart of Peercarbon’s fintech platform are carbon accounting and impact assessment tools. These instruments enable finance providers to offer green finance products to businesses, facilitating transparent reporting on the environmental impact of their financing to stakeholders.
Maiyo emphasizes the transformative power of sustainability-linked finance, offering SMEs not just the capital needed for growth but also a financial incentive to enhance their sustainability practices.
Starting with a lean approach, Peercarbon self-funded its operations for a year, leveraging insights from close connections to refine their strategy based on market feedback. The startup is now in the process of raising a pre-seed investment round, targeting institutional investors interested in making an impact.
This will support Peercarbon’s growth, as the startup has already seen considerable traction in its initial phase. A focused group of SMEs is currently making active use of the software.
“These SMEs are keen to use our platform to secure green financing, facilitating their shift towards more sustainable practices. A promising development is our qualified lead list of 200 schools interested in our program following our proof of concept,” Maiyo explained.
Additionally, Peercarbon has attracted interest from impact lenders ready to join the Peercarbon ecosystem, with tentative agreements totaling US$300,000.
Maiyo believes this demonstrates the viability and acceptance of Peercarbon’s solutions in the realm of sustainable finance.
“The early commitment from industry stakeholders and the enthusiastic response from SMEs highlight the transformative potential of Peercarbon’s innovative solutions in promoting sustainability.”
With significant progress already in Kenya and Tanzania, Peercarbon aims to extend its reach, planning to expand its operations across a wider region within Africa.
