d.light, a company that specializes in solar-powered solutions, has successfully secured securitized financing worth $7.4 million (or more than ₦10 billion). This funding will be used to grow its ‘Pay-Go’ personal finance service. Additionally, the funds will be directed toward broadening the accessibility of the company’s solar-powered products to low-income households in Nigeria.
The financing originates from the Nigeria Infrastructure Debt Fund operated by Chapel Hill Denham. African Frontier Capital, which are the transaction’s main and backup service providers, structured and sponsored the financing.
Founded in 2007, d.light launched its inaugural solar product the following year. Since then, the company has expanded into a variety of markets, including Kenya, Uganda, Tanzania, and Nigeria. D.light commenced operations in Nigeria in 2022 and is now using the new financing to scale its operations.
By the year 2030, the company plans to reach a billion people in developing countries. It claims to have already impacted over 150 million people through the sale of nearly 30 million of its solar products.
Nick Imudia, the CEO of d.light, has validated that the recently secured financing will enable the company to supply more solar-powered products at affordable rates to low-income households in Nigeria.
d.light has previously used securitized finance to raise equity for off-grid solar projects in other sub-Saharan African nations. Now, the company plans to use its experience to scale up operations in Nigeria.
This financing opportunity allows Chapel Hill Denham to make a significant contribution to Nigeria’s renewable energy sector while also promoting sustainable development. Bolaji Balogun, the CEO of Chapel Hill Denham, highlighted that the asset management firm is spearheading “local currency securitization for financing solar home systems and crucial solar-powered household utilities in Nigeria.”
Anshul Rai, Partner for Infrastructure & Climate at Chapel Hill Denham, has stated that the asset management firm aims to “continue expanding the variety of financing solutions obtainable to infrastructure providers in Nigeria,” with particular emphasis placed on tackling the country’s most pressing sustainable development challenges.
This new funding comes after d.light received securitisation financing of $30 million from the Eastern and Southern African Trade and Development Bank Group (TDB Group) in August 2023. The company has the potential to acquire up to $125 million in receivable assets.
Since 2020, d.light has managed to secure over $500 million in securitised funding. d.light has recently declared that it has been able to fully repay all the lenders of its initial securitised facility. Additionally, it reported a substantial 41% increase in revenue during the first half of 2023. The primary driver behind this sharp surge in its income has been attributed to the company’s operations in Nigeria.
