Ghanaian Solar Firm Raises $25M Series-C Funding To Boost West African Expansion

Ghanaian Solar Firm Raises $25M Series-C Funding To Boost West African Expansion

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Solar investment firm Sunfunder invested in Peg Africa and Solarnow in 2019. Photo - Peg Africa

Ghana-based pay-as-you-go solar company Peg Africa has raised a $25 million Series C funding round, bringing its total funding to date to $47.5 million.

The latest investment from new and existing investors is aimed Peg Africa boosting growth in its current markets. The company has operations in Ghana, Ivory Coast and Senegal, according to a press release.

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The solar firm serves 60,000-plus households and more than 300,000 users, through 70 service centers, employing 400 full time staff and 550 commission-based sales agents, according to Forbes.

The solar energy firm makes use of pay-as-you-go technology and low-cost mobile payment systems to supply clean energy to underserved users in West Africa whose residents could not previously afford it.

The pay-as-you-go financing model also helps users to build a credit score, according to Ventureburn.

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Peg Africa provides solar energy for underserved communities. Photo – Peg Africa

The $25 million Series C round consists of $20 million in debt financing, with U.K.-based CDC Group responsible for $15 million, and existing lenders SunFunder and ResponsAbility providing $5 million, according to the press release.

The remaining $5 million is in the form of equity investments from existing investors, Energy Access Ventures, Blue Haven Initiative, I&P Afrique Entrepreneurs and Acumen Fund, as well as new investors Total Energy Ventures and the Renewable Energy Performance Platform.

A well-funded solar firm

Founded in 2013, raised four previous rounds between 2015 and 2017, according to Crunchbase.

In the last few years, pay-as-you-go solar companies in Africa have raised significant amounts to fund expansion.

While PEG Africa is one of the market leaders in West Africa, M-Kopa Solar is a big player in East Africa, having raised $161.8 million over 11 funding rounds, Crunchbase reports.