According to the company, d.light’s revenues increased by 41% in the first half of 2023. d.light offers low-income people innovative home products and inexpensive financing.
The results are mostly due to d.light’s business in Nigeria, the continent’s most populated nation and greatest economy, growing by 143%. The launch of d.light’s new solar inverter product and sales of its solar home systems using d.light’s Pay-Go cheap personal finance solution have both contributed to the company’s three-digit growth in Nigeria. Since it is a privately held business, d.light does not release financial data.
The CEO of d.light, Nick Imudia, commented on the company’s performance to date in 2023. He said, “d.light has been operating in Nigeria since 2009, and over the past few years we’ve been laying the foundation to establish a stable, resilient business in the nation that is focused on meeting the unique needs of people and communities who don’t have access to a regular energy supply. Our remarkable 2023 results demonstrate that our dedication to offering high-quality solar products at competitive prices is successful.
“Our success in Nigeria has been primarily driven by the popularity of our new d.light solar inverter product, which we launched in September 2022 and which is specifically designed for the Nigerian market,” added Imudia. “Although a sizeable fraction of Nigeria’s population lives off-the-grid without access to a consistent power source, a slightly bigger percentage is wired into the country’s main electricity infrastructure. However, due to the grid’s inconsistent operation, these people occasionally have power for a few hours every day, or even the whole day, before the grid malfunctions and leaves them without power for hours or even days.
“This issue is resolved by our solar inverter product. It draws power from the energy grid, but if the grid were to fail, the inverter would switch to solar power to keep the house’s power supply steady and reliable. It is a workable and efficient answer to the issue that many Nigerians have with unstable electricity supply.
Imudia continued, “The success of our solar inverter in Nigeria shows how d.light adjusts its solutions to the specific demands of individuals in a certain market. Ron Pfende, CFO of d.light, outlined how the company has modified its operations to meet the demands of the current international economic climate. “People’s day-to-day lives are still being impacted by the recent challenging macroeconomic conditions brought on by the epidemic, which was followed by the interruption from the war in Ukraine. People with low incomes now have even less money in their pockets to spend because disposable income has decreased.
“In response, d.light has increased the number of low-cost, accessible solar goods that are offered through our Pay-Go business, including the introduction of a brand-new portable solar lantern in our east African markets. The new lantern includes many of the features and capabilities of our full solar home system, but at a more affordable price point. These features and capabilities include an interior light, a digital radio, a removable handheld torch, USB ports for charging a phone, and also a built-in speaker with Bluetooth connectivity to stream and listen to music. The lantern is portable so you may use it inside and outside of your home, unlike the larger home system.
Pfende anticipates that d.light will maintain its present growth trajectory through the rest of 2023 and into 2024. D.light is expanding operations in its current markets to fuel this expansion; just last month, the company obtained USD$125M in securitization finance for its operations in Tanzania. With this additional funding, d.light plans to expand its Pay-Go service in the nation as well as its current securitized credit facility. Additionally, d.light intends to provide new goods and enter new markets in east and central Africa.
Due to the increased strain on household budgets, d.light has modified its product strategy by unbundling several solar-powered products from a single package and making them separately available for customers to purchase as and when they have the funds to do so, funded by d.light’s affordable Pay-Go service.
According to CEO Imudia, “in the past, we would sell a set of solar-powered interior lights, an exterior security light, a radio with speakers, a fan, and possibly even a TV – all in a single bundled package.” “However, due to the decline in purchasing power, not all of our customers can afford to purchase these bundles at once.
Unbundling enables individuals to purchase each d.light product as and when they are able to do so while still knowing that they may all work together to create a single home system. Imudia enumerated the non-financial accomplishments of d.light for the year in the following manner: “So far in 2023, we’ve accomplished the milestone of improving more than 150 million people’s lives globally with our reasonably priced solar-powered devices. Additionally, since d.light was established in 2007, these products have prevented an estimated 33 million tonnes of CO2 emissions from entering the environment.
Imudia continued, “d.light is in an admirable situation right now. “We can rely on our financial partners’ trust and support, as well as a product strategy built on innovation, affordability, and the flexibility to fulfill the various demands of consumers across a range of marketplaces. We are in a great position to keep growing this year and, more importantly, to keep transforming the lives of low-income families and communities while protecting the environment and working toward net zero.