Technology

Ugandan start-up SolarNow acquires Six Million Dollars fund for expansion

By Joseph Lubandi

Posted on October 24, 2017

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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.

SolarNow is a social business with Dutch-origin focused on the provision of high-quality solar home systems, electrical appliances and power solutions to the people of Uganda. SolarNow Uganda is a franchise that sells to the rural households and businesses in Uganda solar systems with an affordable 24-month credit facility.

Confirmed reports show the arrangement of a syndication lead by SunFunder with the participation of responsibility Investments AG and Oikocredit. The $6 million facility is SolarNow’s second structured asset finance instrument, known as SAFI, arranged by SunFunder. SAFI is a bankruptcy-remote special purpose vehicle designed to finance off-grid residential solar companies’ customer receivables. This enables them to expand their pay-as-you-go or solar lease offerings to reach more people living without access to energy.

As Ryan Levinson, SunFunder CEO, puts it:

“Our customers need more scalable, less time-consuming financing options so they can focus on their core business 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.”

SolarNow chief executive officer (CEO), Willem Nolens said they are thrilled to build a fruitful relationship with Sunfunder has the partnership allows them to entirely grow and reach more than 25,000 clients. They expect to reach 70 percent of Uganda’s off-grid population with solar home systems and tap the unmet market opportunity in East Africa.

This awesome article Ugandan start-up SolarNow acquires Six Million Dollars fund for expansion was first posted on GURU8

Source: Guru8