Off-grid solar solutions provider d.light has successfully raised $50 million in funding from the European Investment Bank (EIB), responsAbility Investments, Social Investment Managers & Advisors (SIMA), SunFunder, and another mission aligned investor.
According to Mercom Capital Group’s Funding and M&A report, during Q1 2018, global venture capital (VC) funding into the solar sector fell 75 percent QoQ to $161 million raised in 22 deals. In Q4 2017, the figure stood at $639 million raised in 30 deals.
The new investment will facilitate the company’s scale-up plans and will help in the launch of new solar home system offerings and provide financed ‘Pay As You Go’ (PAYGO) solar home system products to millions of additional customers in existing and new markets.
In March 2018, Mercom had reported that the European Investment Bank (EIB) announced plans to provide $25 million in financing to low-cost solar power provider D.light design to strengthen energy access in Africa through the installation of solar kits that do not require grid connectivity.
Off-grid solar has a bright future in poor and under developed parts of the world and the funding towards these emerging markets has also witnessed a significant increase over the years. According to Mercom’s Solar Funding and M&A Reports, the global off-grid solar market saw deals worth $97 million in the year 2015. Approximately $147 million were raised in 2016 and in the year 2017, the sector witnessed an exponential growth, raising a whopping $243 million.
Previously, d.light’s growth was primarily funded by equity. However, debt funding will now provide the bulk of the financing that enables the company to finance its Pay-Go receivables and scale the business sustainably furthering its mission of making solar products universally available and affordable.
“We are thrilled to unlock debt financing at a significant scale, which takes us to the next level of our evolutionary journey,” said Ned Tozun, d.light co-founder and CEO in a media release issued by the company.
In January 2018, Mercom reported that the off-grid solar solutions have benefited approximately 360 million people across the globe, according to a report by the World Bank Group’s Lighting Global Program, Dalberg Advisors, and the Global Off-Grid Lighting Association (GOGLA).
Image credit: d.light