Sistema.bio secures $3.5 mn from Novastar Ventures to accelerate growth in African market

The decentralised or community biogas technology leader Sistema.bio has announced a $3.5 million investment from Novastar Ventures, part of a recent internal financing round totalling $7.75 million. The biogas firm held that this funding will be used to expand into new African markets, develop additional agricultural and energy products.

Joyce Cacho, Board Chair at Sistema.bio, highlighted the impact of this investment, “Novastar Ventures investment strengthens Sistema.bio’s mission to empower low-resourced farmers with sustainable solutions that drive economic growth, climate resilience, and regenerative agriculture. Together, we are scaling impactful technologies that benefit both people and the planet.”

Steve Beck, Co-founder and Managing Partner at Novastar Ventures, stated that Sistema.bio has technology and financing model which enables family farmers to transform waste into renewable energy and fertilizer, unlocking economic, health, and productivity benefits. This builds farmers’ resilience to climate change while reducing greenhouse gas emissions.

Beck also noted that Sistema.bio is the first investment from Novastar’s Africa People and Planet Fund III (NVIII), which focuses on transformative businesses that align economic growth with environmental sustainability. He expressed excitement about Sistema.bio’s potential to leverage carbon markets to serve more farmers with tools for building resilient, sustainable agricultural systems.

The official statement emphasized that Sistema.bio’s biogas systems and digital measurement, reporting, and verification (MRV) technology align with Novastar’s mission to create lasting value for people and the planet.

With this investment, Sistema.bio aims to scale its services across Africa, empowering more farmers while advancing its climate action goals, including achieving a 1% reduction in global greenhouse gas emissions by 2030.

In 2024, Sistema.bio has raised a total of $18.5 million, supporting its regional expansion, product development, and efforts to meet the global demand for renewable energy. This funding also sets the stage for the company’s upcoming Series C round, reinforcing its leadership in biogas technology and commitment to smallholder farmers worldwide.

In India, Sistema.bio said in October that the company will install 2,250 domestic biogas plants across rural areas in the largest state of Uttar Pradesh. The state’s environment ministry has approved the project with each plant costing Rs 39,300 only.