FinTech: d.light Lands $30M For Low-Cost Solar Devices In Tanzania

August 15, 2023 | ESG and Sustainability, FinTech, News

d.light has now raised $490 million in total securitized financing since 2020.

d.light, a global provider of affordable household products and financial solutions for low-income households, has successfully secured a $30 million securitization facility from the Eastern and Southern African Trade and Development Bank Group (TDB Group), with the potential to acquire up to $125 million of receivable assets.

This funding aims to enhance d.light’s existing securitized financing facility in Tanzania and expand its low-cost Pay-Go personal finance service within the country, enabling more individuals and households with limited incomes to access the company’s affordable solar-powered household products. (Fintech Finance News)

Having amassed a total of $490 million in securitized financing since 2020, d.light intends to use this funding to extend its reach to underserved families and households in Tanzania through its Pay-Go model. This innovative approach of leveraging payments from existing and future customers who use the Pay-Go service allows d.light to upscale its operations and increase its market share in the country.

CEO of d.light, Nick Imudia said the company’s use of securitization as a scalable financing model for off-grid solar technology, alongside lending partners like African Frontier Capital (AFC), had demonstrated the ability to create positive social impact while facilitating reliable and clean energy access for millions.

d.light’s expansion in Tanzania, a country where electricity access remains limited for a significant portion of the population, aligns with the company’s mission to provide safe, reliable, and affordable solar-powered solutions to underserved communities.

d.light and its lending partner, African Frontier Capital (AFC) propose to leverage the new capital to establish a fresh financing entity known as Brighter Life Tanzania 1 Limited (BLT1). AFC’s Founder and CEO, Eric De Moudt, said the launch of BLT1 would significantly expand their off-balance sheet securitization structures into new jurisdictions for d.light.

This initiative contributes to an impressive cumulative local currency receivables financing volume of nearly USD 500 million.

d.light envisions that it would further expand this model to other sub-Saharan African markets in the coming year.

Related Story: Solar Energy Provider Sun King Raises $260M

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