- With Acumen’s boost, d.light will speed up operations in Uganda, where about 2M people will access electricity for the first time.
- By selling customer receivables to Brighter Life by d.light (BLd) upfront, d.light subsidiaries now have immediate cash flow, enabling them to scale at speed.
- This funding model not only supports financial sustainability but also mitigates currency risks by conducting transactions in local currencies.
For solar-power equipment provider d.light, the journey to lighting homes across East Africa with reliable green energy is fast gaining momentum.
In the latest move, d.light has received a $5 million investment from Acumen’s Hardest-to-Reach (H2R) initiative. This funding is poised to enhance d.light’s presence in Uganda, Kenya and Tanzania.
Acumen’s investment in d.light’s multi-country receivables financing facility, Brighter Life by d.light (BLd), aims to expand energy access for underserved communities in East Africa, creating a huge impact on millions of lives.
Acumen’s H2R is a $250 million project that is tailored to activate access to clean energy markets in 16 of Africa’s underserved regions. The initiative uses a variety of financial instruments to invest in off-grid solar power firms that target off-grid homes.
Its latest investment aligns with d.light’s mission to provide clean, affordable energy to households without reliable electricity, particularly in rural areas. With Acumen’s support, d.light is poised to accelerate its operations in Uganda, where an estimated 1.9 million people will access electricity for the first time.
A novel idea in solar financing
The BLd facility represents a breakthrough in solar financing, addressing one of the most pressing challenges faced by solar home system companies: long cashflow cycles. Traditionally, players in the industry such as d.light operate on a Pay-As-You-Go (PAYGo) model, allowing customers to pay for solar products in installments over months or even years. While this approach makes solar energy affordable for low-income households, it also ties up cash that companies need to reinvest in growth.
By selling customer receivables to BLd upfront, d.light subsidiaries gain immediate cash flow, enabling them to scale operations without taking on excessive debt. This model not only supports financial sustainability, but also mitigates currency risks by conducting transactions in local currencies—a critical advantage in regions prone to currency devaluation.
“Acumen’s new investment empowers us to expand energy access and deliver clean, safe, and affordable power to those who need it most,” said Nedjip Tozun, co-founder and CEO of US-based d.light. “This partnership underscores the transformative potential of securitized financing to drive sustainable impact.”
Read also: d.light sets sights on 500,000 customers in Africa as climate tech gathers pace
d.light unlocking potential in underserved markets
Uganda stands to gain immensely from this $5 million investment. With its inaugural focus on the East African nation, Acumen’s funding through H2R is expected to impact over 2.3 million people, offering many their first taste of reliable electricity.
The move highlights the importance of innovative financial solutions in tackling energy poverty—a problem that affects over 600 million people across sub-Saharan Africa.
“Acumen’s investment will support one of the largest multi-country receivables financing facilities in Africa,” noted Sandra Halilovic, Head of Acumen’s H2R development facility. “This market innovation will not only benefit millions in Uganda but also set a benchmark for replicating similar structures across the continent.”
Building investor confidence
The advanced receivable financing structure of BLd is designed to attract diverse investors while isolating receivables from the originating company’s credit risk. By creating distinct tranches, the model caters to various investor appetites, ensuring scalability and resilience. This innovation marks a significant step toward building investor confidence in high-impact social enterprises.
Eric De Moudt, CEO and Founder of African Frontier Capital (AFC), which co-developed BLd, lauded the partnership, stating, “This social impact securitization brings financial inclusion and access to clean energy to millions. Acumen’s support is a testament to the viability of these structures in driving meaningful change.”
Beyond numbers: Transforming lives
The implications of this partnership extend far beyond metrics. Access to reliable electricity transforms lives by enabling children to study at night, improving safety, and unlocking economic opportunities for small businesses. It also reduces dependency on harmful energy sources such as kerosene, contributing to better health outcomes and environmental sustainability.
The catalytic effect of Acumen’s $5 million investment is bound to ripple across communities, setting a precedent for how targeted funding can address systemic challenges in energy access.
A Vision for the Future
The partnership between Acumen and d.light reflects a shared vision for a future where energy poverty could be transformed into a relic of the past. As solar technology continues to evolve, innovative financing models like BLd will play a critical role in scaling solutions to meet rising demand.
Halilovic projected, “We hope to see structures like this replicated in other regions, providing first-time energy access to people across the continent. The impact of such initiatives goes beyond individual households to drive economic and social progress on a broader scale.”
Scaling energy revolution
With partnerships like Acumen’s Hardest-to-Reach initiative, the region is proving that bold investments in renewable energy can bridge gaps in equity and inclusion.
For d.light, the journey is simply gaining momentum. The company’s ongoing collaboration with Acumen and AFC signals a commitment to scaling its impact across borders, making clean energy accessible and affordable for all.
