Greenlight Planet raises $90M to sell solar powered electricity kits to African countries
September, 23rd 2020
A solar startup with roots at the University of Illinois just raised $90 million to sell electricity kits to people in sub-Saharan Africa and South Asia.
Greenlight Planet, the maker of Sun King solar-powered, pay-as-you-go electricity kits, raised its new debt and equity funding from investors such as CDC Group, FMO and Norfund. ResponsAbility, SIMA Funds, Symbiotics, Global Partnerships and ARCH Emerging Markets Partners’ Africa Renewable Power Fund also participated.
Of the $90 million, $69 million has been dispersed to the company, said Patrick Walsh, Greenlight’s co-founder and CEO. The remaining $21 million will be given to Greenlight as it delivers more solar systems.
Since its founding in 2007, Greenlight has raised about $160 million, Walsh said. In 2015, the company raised $10 million.
Sun King kits, manufactured in China, include home lighting, mobile phone chargers, radios, televisions and fans, as well as the solar panels and batteries to power those appliances. The plug-and-play kits include everything the user would need and cost about $100 to $150 in total. However, the average customer pays $10 up front and 40 cents per day for the next nine months, Walsh said.
Walsh originally founded Greenlight in 2007 with Anish Thakkar while they were students at the University of Illinois. Now, Greenlight says it has sold more than 1.3 million Sun King products, reaching about 60 million people across 65 countries, and expanding at a rate of over 65,000 new rooftop solar installations per month
By using Sun King kits, consumers have saved over $3.4 billion on fossil-fuel-based energy costs, reducing global greenhouse gas emissions by more than 14 million metric tons, Greenlight said.
“It has grown over the years from a business selling solar-powered lanterns to a business designing, distributing and financing solar home systems and general energy products for people across Sub-Saharan Africa and South Asia,” Walsh said.
Greenlight is mainly selling its products to people in Kenya, Tanzania, Uganda and Nigeria, as well as countries in South Asia and Latin America. Greenlight employs 1,250 full-time staff worldwide and over 5,500 sales agents throughout its markets.
Though Greenlight has advertised some to its target markets, Walsh said word-of-mouth has been the most powerful method of new user adoption.
“One of the best advertisements is your neighbor saying that the product works, and it works well,” Walsh said.
The Covid-19 pandemic has made it impossible for Walsh to travel to Greenlight’s markets like he usually does, but he said because more people are spending time at home trying to avoid contracting the virus, they find themselves needing more electricity at home as well.
“[Covid] has not impacted business,” Walsh said. “In fact, a lot of areas of our business has grown because these are essential products for people. With people being stuck at home, there’s a greater need for lighting and need for communication.”
Source: tradearabia.com