d.light, a pioneering manufacturer and provider of renewable energy solutions, has received a new $50 million investment from an international lender consortium 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.
Ned Tozun, d.light CEO and Co-founder
“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. 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,” Ned Tozun, d.light CEO and Co-founder said.
In addition to the $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 $300 million.
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Why The Investors Invested
“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. 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,” Collins Kuindwa, who led the transaction for Mirova SunFunder said.
“TDB is pleased to be supporting d.light on their journey to impacting 1 billion lives. Through our triple bottom line approach, we ensure that every transaction we finance is sustainable in economic, social, and environmental terms in our member states. 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,” Michel Awori, CEO of TDB said.
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“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. 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,” Marina Pannekeet, Manager Energy Eastern & Southern Africa at FMO.
A Look At What d.light Does
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.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh