d.light, a provider of household products and affordable finance for low-income households, has achieved its highest-ever quarterly revenue and profits in Q2 2024. Since its inception in 2007, the company is on course to hit its target of 60% year-on-year revenue growth this financial year.
d.light’s Q2 growth was primarily driven by Sub-Saharan Africa, where it has expanded its presence in recent years supported by securitized receivables financing facilities. In the last four years, d.light has set up 5 securitized finance facilities in Sub-Saharan Africa with a combined total value of USD 718 million. These include two in Kenya, one each in Nigeria and Tanzania, and earlier this month a new USD 176 million facility for Kenya, Tanzania and Uganda.
This financing has enabled d.light to expand its operations and make its solar-powered products affordable for more low-income households and rural communities. This has significantly contributed to the increase in sales. India has also been a significant growth market for d.light with over 73% growth during the last year.
Commenting on the news, d.light CEO Nedjip Tozun said, “We’ve set ourselves ambitious growth targets for this financial year and our record-breaking results in Q2 demonstrate that we’re capable of reaching new heights in the coming months. d.light has been EBITDA profitable for several years and we are thrilled to announce our first-ever net income profitable quarter. It’s a true indicator of long-term sustainability for d.light and for the PayGo business model, and is a critical milestone for achieving our goal to transform the lives of one billion people by 2030.”
A recent report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the WHO, found that in 2022 685 million people worldwide lived without electricity access. Out of this figure, 570 million live in Sub-Saharan Africa. In addition, 2.1 billion people globally relied on polluting fuels for cooking, largely in Sub-Saharan Africa and Asia.
Tozun concluded, “d.light’s exceptional Q2 performance, our strong balance sheet, and the ongoing efforts to scale up our offerings and broaden our reach are testament to the hard work and commitment of our d.light colleagues to deliver positive change. We want to continue supporting underserved communities that lack basic amenities for lighting and cooking, to achieve our ultimate goal of transforming the lives of one billion people by 2030.”