Off-grid solar product manufacturer d.light has secured US$30 million to purchase up to US$125 million of receivable assets.
The funding, obtained from the Eastern and Southern African Trade and Development Bank Group, will be used to increase its existing securitised financing facility in Tanzania and scale up its low-cost Pay-Go personal finance service in the country, allowing more low-income people and households to purchase the company’s solar-powered household products.
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“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. We’ve successfully used the securitisation model for several years in Kenya and now we and our partners are expanding it to Tanzania,” said d.light CEO Nick Imudia.
The latest finding will bring its securitised financing to US$490 million since 2020. The company added that the finance facility in Tanzania works by leveraging the payments of d.light’s existing and future customers there for solar products purchased using its Pay-Go service. This is then used to raise funding to upscale the company’s activities and grow market share in the country.
Currently, only 40% of the population in Tanzania have electricity access and the majority currently do not have grid connectivity and a reliable power supply.