Ghanaian pay-as-you-go (PAYG) off-grid solar provider PEG Ghana has raised a US$7.5 million Series A funding round to expand operations, build out its management team and launch in Ivory Coast.
PEG has established itself as the largest PAYG financing company in Ghana, providing loans for solar home systems and other useful assets to off-grid households.
The company focuses on off-grid customers, often rural and considered risks by banks and microfinance firms, offering PAYG technology that allows it to control assets remotely in the field while they are being repaid by customers.
PEG – which has over 10,000 customers and operates 29 service centres in seven regions of Ghana – has now confirmed the close of a US$7.5 million round, which came in two stages.
A US$4.3 million A-2 round closed late last week, and was led by led by Energy Access Ventures (EAV). Other investors included Blue Haven Initiative and existing investors Investisseurs & Partenaires (I&P) and ENGIE Rassembleurs d’Energies. This followed an A-1 investment of US$3.2 million in September 2015.
“We are thrilled to receive the support of new and existing investors, and to continue our vision to bring pay-as-you-go financing to the massive, and largely ignored, West African market. As a market leader in this region, where there are 35 million off-grid homes, we are uniquely placed to do this,” said Hugh Whalan, chief executive officer (CEO) of PEG.
Dr Michael Gera, managing partner of EAV, said his company was proud to be investing in PEG, saying it was hugely impressed with PEG’s leadership team and looks forward to working with the company and its other investors.
Sebastien Boye, chief investment officer of I&P, said I&P was very enthusiastic to participate in PEG’s new round of financing.
“As one of the first investors, we are strong believers in PEG’s mission and their potential,” he said.