AFRICA – d.light, a pioneering manufacturer and provider of renewable energy solutions, has received a new US$50 million investment from an international lender consortium.
The consortium is comprised of Mirova SunFunder, TDB (Trade and Development Bank), and FMO, the Dutch entrepreneurial development bank.
The investment is structured as a balance sheet debt facility and will allow the company to continue expanding its solar and pay-as-you-go consumer finance business across Africa, as well as develop new creative products.
“The investment underpins the catalytic role of the company in making available clean, reliable solar energy solutions through the pay-as-you-go business model that enables off-grid customers to pay for solar lighting products in affordable instalments using various mobile payment options,” Ned Tozun, d.light CEO and Co-founder said.
“Significant amounts of capital are required to enable us to continue providing these financing plans for our customers as we grow.
“We are thankful for the continued support of our funding partners to enable us to create a brighter future for the families we serve as we continue on our journey to impact a billion lives.”
In addition to the US$238 million off-balance-sheet facility and other financings completed in the last six months, the total money raised for d.light in 2022 now exceeds US$300 million.
“d.light and SunFunder have been partners for nearly 10 years. We have seen d.light transform over 125 million lives with their products and are happy to have been part of their journey of building a future of clean energy for all,” Collins Kuindwa, who led the transaction for Mirova SunFunder said.
“We are delighted to have co-led this syndicate of proactive lenders who worked together with one common goal: to provide d.light with additional capital to transform the lives of 1 billion people with sustainable products by 2030.”
According to Michael Awori, the CEO of TDB through their triple bottom line approach, they ensure that every transaction they finance is sustainable in economic, social, and environmental terms in their member states.
“TDB is pleased to be supporting d.light on their journey to impacting 1 billion lives. With ongoing CO2 emissions reductions for every household reached, this transaction will create significant environmental impact, while contributing to critical outcomes such as access to electricity, job creation, economic growth, increased health benefits, improved quality of education and more,” he said.
d.light has delivered solar electricity to over 125 million people in 70 countries since its inception. Their vast product portfolio includes anything from low-cost portable solar lights to solar home systems and products including TVs, fans, and cellphones.
“The lack of access to energy continues to hold back social and economic development, particularly in Sub-Saharan Africa. As such, supporting off-grid renewable energy solutions is key to FMO’s strategy,” Marina Pannekeet, Manager Energy Eastern & Southern Africa at FMO.
“As one of the leading providers of solar home systems and an existing FMO equity investee, we are happy to continue to support d.light on its future growth trajectory.
“By denominating part of our commitment in local currency, our financing is intended to de-risk the company’s balance sheet and make it more resilient to potential shocks.”
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