Uganda’s SolarNow Raises USD 9 Mn For Off-Grid Solar Systems Deployment
Kampala-based SolarNow, a company retailing and financing solar home systems, has closed a USD 9 Mn debt deal in a round led by their longtime financier SunFunder. The debt facility which was arranged by the financier also saw the participation of co-lenders responsAbility and Oikocredit.
The round follows three months after SolarNow raised USD 740 K in grant from the MasterCard Foundation Fund For Rural Prosperity.
The narrative from SunFunder points out that SolarNow will utilize the funds in the scaling of its services across Uganda.
According to a statement, the round will help the company deploy 17,500 new off-grid solar systems in Uganda, which is hoped by SunFunder to be approximately 2.5MW of solar capacity.
In a publication that followed this development, we have been informed that while other impacts are expected, an estimate over 70,000 women will benefit from improved energy access in Uganda, and sidestep more than 210,000 tons of greenhouse gas emission brought on by kerosene use.
In 2018, the solar company roped in USD 25 Mn from Overseas Private Investment Corporation (OPIC) as a part of commitment to its USD 100 Mn Solar Energy Transformation Fund. At a time, SolarNow also announced an undisclosed funding deal from the Shell Foundation, believed to be towards the same fund.
It is reported that the recent round is being concluded as part of a 5th partnership anniversary between SolarNow and SunFunder, who has invested the sum of USD 19 Mn in the solar company so far.
SolarNow was founded in 2011 by Williem Nolens and has brought its total fundraise to nothing less than USD 30 Mn across different deal types.
The founder in a statement revealed that the syndication and third structured finance asset from SunFunder allow the company to minimize the fundraise burden and to focus on business instead. By selecting the right clients and treating them well, SolarNow’s credit portfolio remains healthy, enabling them create a strong foundation for sustainable growth, according to Pctechmag.
Featured Image: SolarNow