Solar home systems provider Sun King closes a $260 million funding round. The funding raised from several investors will help accelerate rural electrification in Asia and sub-Saharan Africa.
This is one of the largest deals in the solar home systems segment in the world, and in Africa in particular. Solar kit provider Sun King has just raised $260 million from several investors to expand its operations in Asia and Africa. The Series D fundraising was led by BeyondNetZero, the climate investment arm of General Atlantic, a growth capital firm, along with the team at M&G Investments and Arch Emerging Markets Partners.
Ekta Partners acted as lead financial advisor on the transaction. For its part, Goodwin Procter provided legal advice to Sun King, and Freshfields advised BeyondNetZero. According to the company formerly known as Greenlight Planet, the $260 million financing includes $100 million in primary investment for further expansion in Africa and Asia.
Expansion in Africa
Despite the addition of new investors, Sun King founders Patrick Walsh and Anish Thakkar retain control of the voting board of directors. With this round of funding, Sun King also plans to expand. In Africa, the company primarily distributes solar home systems and other kits such as solar lanterns in countries including Kenya, Tanzania, Uganda and Nigeria.
“Today, Sun King operates the largest direct-to-consumer solar power distribution network, with a growth rate of 150,000 new customers per month. In Kenya, one in five people now use Sun King, and 18 million Kenyans have benefited in 10 years of operation. In Nigeria, the company’s user base has tripled in the last year alone. Despite its rapid growth, the company has remained consistently profitable,” says the company, which claims 1,250 employees in Africa and Asia.
Sun King also plans to expand its product line, including larger solar systems with AC inverters and new products such as cell phones. Like other suppliers of solar home systems, the company relies on pay-per-use to make its equipment accessible in rural areas where purchasing power is often quite low in sub-Saharan Africa.
Jean Marie Takouleu