PEG Ghana has completed a $7.5 million Series A round. The funding will be used in strengthening its management team, expanding operations in Ghana and entering Ivory Coast.
According to reports, the Series A investment comes from a $4.3 million A-2 round closed and follows an earlier A-1 investment of $3.2 million in September 2015. The A-2 round was led by Energy Access Ventures (EAV), Blue Haven Initiative, and additional investment from existing investors; Investisseurs & Partenaires (I&P) and Engie Rassembleurs d’Energies. These investors join Impact Assets and Persistent Energy Capital, among others.
PEG Ghana is a company that provides solar home systems on credit to households in West Africa. Using a unique financing approach, called ‘pay-as-you-go’ financing, they help customers replace fuel with solar energy that quickly becomes an asset the customer owns. The company has over 10,000 customers and operates 29 service centers in 7 regions of Ghana.
It has established itself as the largest PAYG financing company in Ghana, providing loans for solar home systems and other useful assets to off-grid households.
The company focuses on off-grid customers, often rural and considered risks by banks and microfinance firms, offering PAYG technology that allows it to control assets remotely in the field while they are being repaid by customers. PEG – which has over 10,000 customers and operates 29 service centres in seven regions of Ghana – has now confirmed the close of a US$7.5 million round, which came in two stages.
Speaking on the development, Hugh Whalan, CEO of PEG Ghana.
“We are thrilled to receive the support of new and existing investors, and to continue our vision to bring pay-as-you-go financing to the massive, and largely ignored, West African market. As a market leader in this region, where there are 35 million off-grid homes, we are uniquely placed to do this.”
Dr. Michael Gera, Managing Partner of EAV, Lauren Cochran, Director of Private Investments, Blue Haven Initiative all expressed their excitement to be investing in PEG.