d.light, a leading provider of solar-powered solutions, has clinched a significant financial boost of $7.4 million (₦10 billion+) aimed at scaling up its operations in Nigeria. The infusion of funds will primarily fuel the expansion of its Pay-Go personal finance service and enhance access to solar-powered products for low-income households across the country.
The financing, sourced from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund and structured by African Frontier Capital, underscores a strategic move to bolster Nigeria’s renewable energy sector while catering to the energy needs of underserved communities. This initiative aligns with d.light’s broader vision of reaching a billion people in developing nations by 2030, a goal that has seen the company distribute nearly 30 million solar products, impacting over 150 million individuals worldwide.
Established in 2007, d.light embarked on its mission to provide sustainable energy solutions, launching its inaugural solar product in 2008. Since then, the company has expanded its footprint across multiple African markets, including Kenya, Uganda, Tanzania, and now, Nigeria, where it commenced operations in 2022. With the infusion of new capital, d.light aims to accelerate its growth trajectory in Nigeria, tapping into the nation’s vast potential for solar energy adoption.
Nick Imudia, CEO of d.light, emphasized the significance of the financing in extending access to affordable solar products to more Nigerian households, particularly those in low-income brackets. Leveraging its expertise in securitised finance, d.light has successfully raised substantial funding for off-grid solar initiatives in sub-Saharan Africa, a model now replicated to drive its expansion efforts in Nigeria.
The financing arrangement not only reflects Chapel Hill Denham’s commitment to fostering sustainable development but also signifies a pioneering move in local currency securitisation for solar-powered utilities in Nigeria. Bolaji Balogun, CEO of Chapel Hill Denham, highlighted the pivotal role of the asset manager in advancing Nigeria’s renewable energy landscape through innovative financing solutions.
Anshul Rai, Partner for Infrastructure & Climate at Chapel Hill Denham, affirmed the asset manager’s dedication to diversifying financing options for infrastructure providers in Nigeria, with a specific focus on addressing sustainable development challenges. The latest funding injection follows a previous $30 million securitisation facility secured by d.light from the TDB Group in August 2023, showcasing the company’s ability to attract substantial investment to drive its mission forward.
d.light’s stellar performance in Nigeria, evidenced by a remarkable 41% revenue surge in the first half of 2023, underscores the growing demand for solar solutions in the region. With its latest financing secured, d.light is poised to further solidify its position as a key player in Nigeria’s renewable energy landscape, paving the way for sustainable and inclusive energy access nationwide.