Leading solar provider d.light has announced that it had raised Ksh 4.1 billion (US$41 million) in equity financing from a Consortium led by Inspired Evolution, an Africa-focused investment advisory firm that specializes in the energy sector.
Consortium partners include the Dutch Development Bank FMO, as well as government-sponsored investment funds Swedfund and Norfund.
This latest funding, which enables expansion of the company’s solar and Pay-Go consumer finance business in Africa, brings the total amount of equity and debt that d.light has raised in the past two years to over US$100 million. The funding round also enabled some of the company’s earliest investors to achieve an exit.
“We are thrilled to have Inspired Evolution as the newest funding partner in the d.light family,” said d.light co-founder and CEO Ned Tozun. “Their energy expertise and strong network add significant value to the work of d.light, allowing us to expand our product line, launch in new markets, and reach more customers.”
With a commanding market share in emerging markets in both Africa and Asia, the company’s revenue and profitability continue to accelerate at an impressive growth rate. This investment combined with solid debt financing and receivables funding solutions will put the company on an even steeper growth trajectory.
Wayne Keast, Managing Partner, at Inspired Evolution said: “We are excited to partner with d.light, the market leader in the portable solar product and off-grid solar home system market, to support the expansion of their Pay-Go solar business throughout Africa which will help address the needs of more than 600 million people that do not have access to electricity”.
Since its founding in 2007, d.light has provided solar energy to more than 88 million people in 62 countries. Their extensive product line ranges from extremely affordable portable solar lanterns to solar home systems that can power multiple lights, mobile phones, and small appliances, including a flat-screen television. d.light’s solar solutions have won multiple international awards for their innovation and design and are sold through more than 30,000 outlets around the world—the largest existing distribution network for these types of products.
With a strong emphasis on product quality and customer service since its earliest days, d.light has built up a loyal customer base in emerging markets. d.light continues to profitably sell hundreds of thousands of units per month, while maintaining excellent quality at scale. Its pay-go financing system has among the lowest delinquency rates in the industry. The company is led by a strong team of deeply experienced, internationally recognized leaders and highly committed, talented local staff.
Tozun and Goldman established an ambitious goal for d.light at its founding: to impact 100 million people by 2020. The company expects to achieve this audacious goal ahead of schedule, and this latest equity funding from Inspired Evolution and other partners will undoubtedly accelerate those efforts.