Vietnam energy startup secures nearly $2 mln in seed funding

Vietnam-based energy tech startup SmartSolar has successfully raised $1.85 million in a seed funding round led by venture capital funds Picus Capital and 2degrees.

Launched less than six months ago, SmartSolar has already achieved an installed capacity of nearly 1 MWp, serving dozens of small and medium-sized enterprise (SME) customers in Vietnam. The company plans to expand its operations across Southeast Asia, capitalizing on the region's untapped potential for rooftop solar power.

Despite abundant solar energy resources, Southeast Asia lags behind in the rooftop solar power development race, with a penetration rate of just 5%—equivalent to approximately 30 GW of capacity. This figure pales in comparison to countries like Germany, which, despite having less sunlight and only one-eighth of Southeast Asia's population, boasts three times the installed capacity and four times the penetration rate.

This significant market gap presents a promising opportunity for companies like SmartSolar to make a breakthrough.

"Many business owners I've spoken with complain about rising electricity bills but don't know how to solve the problem," said Kevin Junker, Founder of SmartSolar and a former McKinsey consultant in Vietnam and Switzerland.