d.light, a provider of household products and affordable finance for low-income households, has secured a new $176 million (Sh22.9 billion) facility to expand its operations in Kenya, Tanzania, and Uganda.
This funding, provided by African Frontier Capital, will enhance d.light’s PayGo consumer finance service, making solar-powered products more accessible to households without electricity.
The pay-as-you-go model, which allows low-income rural households to rent and eventually own home solar power systems, has gained traction in East Africa’s energy sector. The multi-currency facility aims to supply renewable energy to about six million people across the three countries over the next three years.
With this addition, d.light has now raised a total of $718 million (Sh93.5 billion) across five facilities since 2020.
CEO Nedjip Tozun stated that this facility is the first to provide receivables-based financing in all of d.light’s PayGo markets, ensuring consistent cash flow and eliminating the need for additional external equity fundraising.
“Facilities like this enable our pioneering PayGo consumer financing model, allowing us to offer solar home systems and high-efficiency appliances to those who need them most in an affordable and sustainable way,” said Tozun.
Since 2010, d.light has been active in sub-Saharan Africa, with operations in Kenya, Uganda, and Tanzania. Earlier this year, its Brighter Life Kenya 1 Limited facility repaid its senior debt ahead of schedule, marking a first in the off-grid solar sector.
African Frontier Capital CEO Eric De Moudt praised the milestone, emphasizing the importance of financial innovation in bringing clean energy and financial inclusion to vulnerable communities. “This milestone is a testament to how data-driven financial innovation can significantly contribute to financial inclusion for the world’s most vulnerable communities,” said De Moudt.
Over the years, d.light has utilized securitized finance to support its solar-powered household products in sub-Saharan Africa. It has previously established four facilities since 2020, including two in Kenya and one each in Nigeria and Tanzania.
The combined value of these existing facilities, plus the new one, amounts to $718 million (Sh93.5 billion). In February, d.light announced that its $110 million (Sh14.2 billion) securitization facility, Brighter Life Kenya 1 Limited (BLK1), successfully repaid its entire senior debt ahead of schedule using internally generated cash flows, the first such achievement in the off-grid solar sector.
