SolarHome, an off-grid solar firm focused on Southeast Asia, has raised US$5 million to date, having recently closed a US$1 million convertible note offering with impact venture capital firm Insitor Impact Asia Fund.
The new funding will help SolarHome to extend its network of hubs throughout Myanmar, offer more products and expand into Indonesia and Cambodia by year end. The company currently distributes its off-grid systems via 20 sales hubs across central Myanmar and has installed more than 15,000 homes with its systems.
It uses a pay-as-you-go (PAYG) model allowing consumers to make regular mobile payments to top up their solar home systems for up to two years. After these payments the system is unlocked and made available for use of the consumer. The ‘rent-to-own’ model removes the barrier of high upfront costs for a solar system.
Bradley Kopsick, Myanmar country manager at Insitor, said: “SolarHome impressed us with their strong growth trajectory over the past 15 months, reaching more than 15,000 households in Myanmar while maintaining high portfolio quality. The company is a natural fit to our current microfinance and renewable energy portfolios.”
Ted Martynov, chief executive and co-founder of SolarHome, said: “Insitor is one of the few regional funds that has an on the ground presence in Myanmar and an intricate understanding of rural Myanmar.”