d.light gets $7.4 million in securitised financing to scale operations in Nigeria

February 21, 2024
2 min read
  • d.light, a solar-powered solutions provider, has secured $7.4 million (₦10 billion+) in securitised financing to scale up its Pay-Go personal finance service. 
  • The company will also use the funding to expand access to its solar-powered products for low-income households in Nigeria.
  • The financing came from Chapel Hill Denham's Nigeria Infrastructure Debt Fund, and it is structured and sponsored by African Frontier Capital, the transaction's master and backup servicers.

d.light was founded in 2007 and launched its first solar product in 2008. It has expanded to markets including Kenya, Uganda, Tanzania, and Nigeria. The company launched in Nigeria in 2022 and is now scaling operations through the new financing.

With plans to reach a billion people in developing countries by 2030, the company said it has sold nearly 30 million products, affecting over 150 million people. 

Nick Imudia, CEO of d.light, confirmed that the new financing will provide more low-income Nigerian households with affordable solar-powered products.

d.light claims to have used securitised finance to raise equity for off-grid solar in other sub-Saharan African countries, and it is now using this experience to scale up operations in Nigeria.  

The financing enables Chapel Hill Denham to contribute to Nigeria's renewable energy sector while advancing sustainable development. Bolaji Balogun, Chief Executive Officer of the asset manager, also mentioned that the asset manager is doing this “by pioneering local currency securitisation for the financing of solar home systems and essential solar-powered household utilities in Nigeria.”

Anshul Rai, Partner for Infrastructure & Climate at Chapel Hill Denham, stated that the asset manager will "continue to broaden the range of financing solutions available to infrastructure providers in Nigeria, with a particular emphasis on solving the greatest sustainable development challenges facing Nigeria."

The new financing follows the $30 million securitisation funding it received from the Eastern and Southern African Trade and Development Bank Group (TDB Group) in August 2023, and it can purchase up to $125 million in receivable assets. 

d.light has raised more than $500 million in securitised funding since 2020, and it recently paid back all of the lenders in its first securitised facility in full.

In the initial half of 2023, d.light experienced a 41% surge in revenue, primarily attributed to its operations in Nigeria. 

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