Nairobi, Kenya-based, the global provider of transformational household products and affordable finance for low-income households, d.light received USD 30 million securitization facility. The company announced the fundraise on August 14, 2023. Eastern and Southern African Trade and Development Bank Group (TDB Group) provided the investment to the firm. The latest funding offers the capability to purchase up to USD 125 million of receivable assets to d.light.
Purpose of financing for d.light
With the recent funding, d.light seeks to increase its existing securitized financing facility in Tanzania. It also has plans to scale up its low-cost Pay-Go personal finance service in the country. With the personal finance service, the company intends to enable low-income people and households to purchase the company’s affordable, solar-powered household products. Since 2020, the company has raised USD 490 million in total securitized financing.
What the company’s CEO has to add
d.light CEO Nick Imudia said, “This new financing from TDB gives us the extra funding to reach more low-income families and households in Tanzania via our Pay-Go business in a way that is affordable for our customers and sustainable for our business. d.light and our lending partners are long-time pioneers in developing securitized finance as an innovative, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales. We’ve successfully used the securitization model for several years in Kenya, and now we and our partners are expanding it to Tanzania.”
In addition, he continued, “As a scalable method of financing, securitization is an important fiscal tool to help African countries achieve the United Nations’ Sustainable Development Goals for energy access. Expect further expansion of this facility by d.light into other major sub-Saharan African markets during 2023.”
What the investors have to add
Michael Awori, CEO of TDB, further said, “Access to energy is critical to the sustainable development of the continent, especially for the most vulnerable off-grid communities. As one of the leading renewable energy financiers in the region, we are delighted to extend this second facility to d.light, this time in Tanzania. Globally, in 2022 alone, the company reached over 1,677,216 people through the PAY-GO model, created close to 2,000 jobs, and averted 1,329,371 tons of CO2 and black carbon emissions with solar replacing kerosene lamps. This is the kind of impactful track record TDB is keen to support.”
About the company
Sam Goldman and Ned Tozun launched the company in 2007. d.light is a global leader in making transformative products available and affordable to low-income families. d.light has sold nearly 30 million products, such as solar lanterns, solar home systems, TVs, radios, and smartphones, impacting the lives of more than 150 million people.
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