Solar startup d.light closes fifth securitised round at $176 million 

The company will use the new funding to expand its in-house PayGo program, Atlas, which manages credit payments for solar equipment.  
dlight

The COVID-19 pandemic stalled the growth plans of many startups. For d.light, a startup that offers solar power solutions in East Africa, traditional financing channels like equity or debt financing tightened as investors became cautious. The company’s workaround was securitisation, which involved restructuring assets not easily converted into cash into investments. 

On Wednesday d.light closed a $176 million deal in a securitised deal led by asset management company African Frontier Capital. The company will use the new funding to expand its in-house PayGo program, Atlas, which manages credit payments for solar equipment.  

d.light provides solar panels and devices such as lighting equipment and televisions to consumers without access to the grid in seven markets. With the new financing, d.light hopes to reach additional consumers in Kenya, Tanzania, and Uganda.

Since 2020, the company has closed five securitised financing rounds totaling $718 million. It received two rounds in Kenya, one in Nigeria, and one in Tanzania. It is one of the few startups using securitised finance in sub-Saharan Africa.

Pfende said that he sees securitisation as a win-win for investors and the company.

“This kind of solution can work for companies that collect regular payments from their customers for products purchased with consumer financing or that have other income-generating assets, like carbon credits, that are generated by a project over time,” said Pfende. 

The company offers solar solutions, including portable chargers, lights, and televisions. It is an alternative to kerosene and bundles appliances like cooktops and phones in its product portfolio. Customers buy directly from d.light or finance their purchases with mobile payments through d.light’s Pay-go system. 

Since its launch in 2007, the company has sold products in over 70 countries, focusing on Africa and India. It operates in the USA, China, India, Kenya, Uganda, Nigeria and Tanzania.

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