PEG Africa raises $5m in debt funding from ElectriFI

Accra-based pay-as-you-go solar company PEG Africa has raised $5-million in funding in the form of debt finance, from the EU-funded Electrification Financing Initiative (ElectriFI).

PEG Africa currently provides 400 000 daily users in Ivory Coast, Ghana and Senegal with credit for solar home systems via its pay-as-you-go financing model.

The firm was founded in 2013 by CEO Hugh Whalan and COO Nate Heller (pictured above, left to right).

The company explained in a statement today that the funding will be used to help grow PEG Africa’s existing markets.

PEG Africa was founded in 2014 by CEO Hugh Whalan and COO Nate Heller

Whalan, commenting in the same statement, said PEG Africa has “almost doubled in size” annually since 2015.

He added that the fact that the firm is now able to raise a significant amount of its funding in debt demonstrates that its approach is financially stable.

In March, PEG Africa raised a $25-million Series-C round which it plans to use for off-grid solar expansion in Ivory Coast, Ghana and Senegal (see this story).

At the time, PEG Africa said $20-million of the round was in the form of debt, with UK development finance institution CDC Group — along with existing lenders SunFunder and ResponsAbility — having arranged a $15-million multi-currency facility.

That round’s remaining $5-million comprises equity investments from a number of investors, they include: Energy Access Ventures, Blue Haven Initiative, I&P Afrique Entrepreneurs, Acumen Fund, as well as new investors Total Energy Ventures and the Renewable Energy Performance Platform.

PEG Africa is one of 50 startups that were selected by the MetLife Foundation, Visa, non-profit Accion and World Bank member IFC for the Inclusive Fintech 50 initiative which recognises top early-stage fintechs that contribute to financial inclusion around the world.

Read more: Asset finance firm PEG Africa raises $25m for West Africa solar expansion
Read more: Sub-Sahara Africa is top market for those that made Inclusive Fintech 50 list

Featured image, left to right: PEG Africa founders CEO Hugh Whalan and COO Nate Heller (Supplied)