d.light Secures $300 Million to Expand Solar Financing for Off-Grid Communities in Africa
Solar energy startup d.light has secured over $300 million in new capital to purchase consumer receivables.
The Stanford-founded company is set to scale the distribution of solar home systems across underserved areas in Kenya, Uganda, Tanzania, and Nigeria. The new funding will support the company’s goal of reaching 10 million people within the next two years through its “Brighter Life by d.light” (BLd) facility.
The company’s Pay-As-You-Go (PayGo) model, which allows low-income households to make weekly payments as low as $2 instead of large upfront costs, remains central to this expansion. Many of these customers earn less than $5 a day, making traditional payment models inaccessible.
"The expansion of BLd marks a pivotal moment in our journey to provide affordable solar energy to millions,” said Nedjip Tozun, CEO of d.light. “Securitization has been a crucial innovation that has allowed us to scale our consumer financing offering, unlocking affordability and enabling us to reach more households, improve livelihoods, and contribute to a sustainable future."
The BLd facility’s multi-currency structure mitigates currency risk, enabling consistent financing terms across various markets, including Nairobi, Kampala, and Dar es Salaam.
d.light’s financing model has proven reliable, with the company’s $110 million Brighter Life Kenya 1 Limited facility fully repaid ahead of schedule in February 2024, using internal cash flows.
The latest funding was led by Mirova, a Paris-based sustainable investment firm, and arranged by African Frontier Capital. “Mirova is proud to continue supporting d.light in their mission to provide clean energy for all,” said Rim Azirar of Mirova.
Eric De Moudt, CEO of African Frontier Capital, added: “The success of BLd demonstrates the effectiveness of innovative financing models in driving social impact.”
This expansion boosts the company’s total securitized financing capacity to $842 million across five facilities.