A global company that provides solar-powered solutions, d.light, has announced a significant increase in its funding.
The company has obtained $7.4 million (₦10 billion+) through securitized financing, a move that will help it grow its operations in Nigeria and reach more low-income households with its affordable and reliable products.
One of the main features of d.light’s offering is its Pay-Go personal finance service.
This innovative model allows customers to access solar products on a pay-as-you-go basis without the need for upfront payments or collateral. Customers can make small, flexible payments over time, using mobile money or other digital platforms, until they own the product outright.
This approach makes it easier for solar adoption, especially for low-income households who may not have access to formal credit or savings. It also creates a loyal customer base, as customers can upgrade to higher-end products or access other services as their needs and incomes grow.
Read also: D.Light secures $30million facility from Africa Trade and Development Bank
Chapel Hill Denham: A Leader in Local Currency Securitization
The securitized financing that d.light has obtained comes from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund, the first and only listed infrastructure debt fund in Africa. The fund provides long-term, local currency financing for infrastructure projects in Nigeria, with a focus on renewable energy, transportation, and social infrastructure.
The fund has partnered with African Frontier Capital, a specialized financial services firm that acts as the master and backup servicers for the transaction. Together, they have structured and sponsored the financing, which is the first of its kind in Nigeria.
By using local currency securitization, Chapel Hill Denham and African Frontier Capital are supporting the development of Nigeria’s renewable energy sector while also advancing the country’s sustainable development goals. Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, said that the fund is “pioneering local currency securitisation for the financing of solar home systems and essential solar-powered household utilities in Nigeria.”
d.light: A Pioneer in Off-Grid Solar
d.light was founded in 2007 with a vision to provide clean, affordable, and accessible energy to people in developing countries. The company launched its first solar product in 2008 and has since expanded its presence across markets in Kenya, Uganda, Tanzania, and Nigeria. In 2022, d.light entered the Nigerian market, and with this new financing, it is set to scale its impact in the country.
d.light’s goal is to reach a billion people in developing countries by 2030 with its solar solutions. The company has already sold nearly 30 million products, affecting over 150 million people. Nick Imudia, CEO of d.light, said that the new financing will enable the company to provide more low-income Nigerian households with affordable solar-powered products.
d.light has also leveraged securitized finance to raise equity for off-grid solar in other sub-Saharan African countries, such as Kenya, Uganda, and Tanzania. The company has raised more than $500 million in securitized funding since 2020, and it recently paid back all of the lenders in its first securitized facility in full.
A Bright Future for Nigeria
As Nigeria faces the challenges of energy poverty, climate change, and economic development, d.light’s expansion offers a ray of hope. With the support of Chapel Hill Denham and African Frontier Capital, the company is poised to make a lasting difference in the lives of millions of Nigerians by providing them with clean, affordable, and reliable solar power.
