Quick Summary:
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d.light has secured $842 million in securitized financing, boosting its ability to deliver solar home systems across Africa through its PayGo model.
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The funding aims to reach 10 million people in Kenya, Uganda, Tanzania, and Nigeria within two years.
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Its Pay-As-You-Go system allows low-income households to access solar energy for as little as $2 per week, promoting energy equity.
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With a proven repayment record and backing from global investors, d.light is emerging as both a solar provider and a financial innovation leader in Africa.
d.light, a pioneering solar energy company founded at Stanford University, has significantly expanded its receivables financing facility. The company has unlocked over $300 million in new capital to purchase consumer receivables.
This expansion brings d.light’s total securitized financing capacity to an impressive $842 million across five facilities. It positions the company as one of the best-capitalized players in Africa’s off-grid energy space.
Powering Growth in Kenya, Uganda, Tanzania, and Nigeria
With this financial boost, d.light now commands close to $1 billion in financing power. The goal is to scale the distribution of solar home systems to underserved communities in Kenya, Uganda, Tanzania, and Nigeria.
Reaching 10 Million People Through PayGo
The expanded facility—branded Brighter Life by d.light (BLd)—is expected to reach 10 million people over the next two years. This will be achieved through d.light’s Pay-As-You-Go (PayGo) model, which enables low-income households to access solar power through micro-payments.
Instead of paying $200 upfront for a solar system, users can pay as little as $2 per week. This affordability is critical for families earning less than $5 per day.
“The expansion of BLd marks a pivotal moment in our journey to provide affordable solar energy to millions,” said Nedjip Tozun, CEO of d.light. “Securitization has allowed us to scale our consumer financing, unlock affordability, and reach more households.”
A Multi-Currency, Risk-Resilient Financing Model
A key feature of the BLd facility is its multi-currency structure, which helps manage currency fluctuations. This reduces risk and ensures stable pricing for customers across regions—from Nairobi to Kampala to Dar es Salaam.
By minimizing exposure to currency volatility, d.light strengthens its financial resilience and scalability.
A Proven Track Record of Repayment
d.light’s financing approach is already delivering results. In February 2024, the company’s $110 million Brighter Life Kenya 1 Limited facility became the first in the off-grid solar sector to repay its senior debt ahead of schedule using internally generated revenue.
This demonstrates that d.light’s customers are repaying their loans reliably—proving that the business model is not only sustainable, but also investable.
Since 2007, d.light has sold over 40 million solar products and impacted more than 200 million lives.
Global Capital Backs d.light’s Vision
The latest funding was led by Mirova, a sustainable investment firm based in Paris, and arranged by African Frontier Capital. Both partners emphasized their faith in d.light’s ability to deliver strong social and financial returns.
“Mirova is proud to continue supporting d.light in their mission to provide clean energy for all,” said Rim Azirar, Deputy Head of Emerging Markets Energy Transition at Mirova.
Eric De Moudt, CEO of African Frontier Capital, added: “The success of BLd shows how innovative financing models can deliver impact at scale. We’re proud to keep backing d.light.”
Beyond Solar: A Model for Consumer Finance in Africa
d.light’s securitization model offers more than energy access. It represents a blueprint for consumer financing in Africa’s informal economy.
By bundling thousands of small PayGo loans into investment-grade securities, d.light connects underserved consumers to global capital markets. This model could be adapted for financing other essential tools, such as smartphones or farming equipment.
A Financial Services Innovator
With nearly $1 billion in financing capacity and a proven record of performance, d.light is no longer just a solar company. It is emerging as a financial services innovator, using solar energy as a stepping stone to economic empowerment.
In Africa’s dynamic fintech and energy markets, that evolution could become its biggest strength.