Ugandan solar startup SolarNow has secured a US$6 million debt facility to help it reach more clients and expand access to pay-as-you-go (PAYG) solar power.
Disrupt Africa has previously profiled SolarNow, which sells solar systems to rural households and businesses in Uganda with a 24-month credit facility in order to make them affordable. The US$6 million facility is SolarNow’s second structured asset finance instrument arranged by SunFunder, and the fifth transaction between the two overall.
“We are thrilled to continue building our fruitful relationship with SunFunder. So far, it has allowed us to focus entirely on our growth and profitability reaching more than 25,000 clients. This new step of our partnership will enable us to continue tackling the massive unmet market opportunity in East Africa of providing affordable energy to millions of off-grid households, and to reach 70 per cent of Uganda’s off-grid population with solar home systems,” said Willem Nolens, SolarNow chief executive officer (CEO).
SunFunder CEO Ryan Levinson said customers such as SolarNow needed more scalable, less time-consuming financing options so they can focus on their core business of delivering solar energy.
“By leading syndications, SunFunder offers solar companies larger ticket size loans with less hassle, and gives investors a route into the market,” he said.
“We are delighted to build on our long-standing relationship with SolarNow and bring in additional investors.”