A $176 million securitization (debt) deal was recently closed by d.light, a global provider of inexpensive household solar solutions for low-income households, to support the company’s expansion into Kenya, Tanzania, and Uganda.
d.light CEO Ned Tozun confirmed the funding in a statement.
The additional funding will be used to buy receivables in Kenya, Tanzania, and Uganda which come from the social impact-focused asset management firm African Frontier Capital (AFC).
The CEO stated that with the funding, the company would be able to increase the number of low-income homes and electricity-deficient communities that may obtain solar-powered products by expanding its PayGo consumer credit offering.
With this latest investment, d.light has raised $718 million in securitized financing through five different arrangements since 2020.
“With this new facility, d.light has for the first time in its history receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria.
“These facilities allow d.light to remain consistently cash flow positive and remove the requirement for further external equity fundraising to fund our growth,” the CEO stated.
Ron Pfende, CFO of d.light, explained how the business has responded to the difficulties posed by the present state of the world economy.
The difficult macro-economic circumstances of recent years, caused by the pandemic and further disrupted by the war in Ukraine, continue to impact people’s daily lives,” Pfende said.
Ned Tozun and Sam Goldman of Standford University founded d.light in 2007, and it has since become a global leader in giving millions of people in 70 countries access to affordable and sustainable energy.
The company launched its first product in 2008, and since then, it has been steadily growing both internationally and internally.
We earlier reported that a grant of USD 3.4 million has been given to d.light as disclosed by Douglas Gavala, the Managing Director for Uganda.
