Singapore: SolarHome, a Singapore-based company that brings pay-as-you-go solar solutions into off-grid households in Southeast Asia, announced today that it has raised US$2 million in a Series A extension round, led by existing investors TRIREC and Insitor Impact Asia Fund.
The newly-raised capital will be used to scale SolarHome’s solution as it pushes towards the next stages of growth of offering its product to a much larger customer base.
“The new capital has enabled us to bring operations closer to EBITDA breakeven since the beginning of this year despite a very challenging environment,” said Geert Jan Ten Hoonte, CEO of SolarHome.
Founded by FORUM, a Singapore-based fintech venture builder, SolarHome offers off-grid households a solar lighting system at a low-cost 24-month subscription plan, with an initial US$10 down payment, followed by daily, weekly, or monthly repayments through scratch cards or mobile money.
The technology built into the system ensures that it won’t function if payment is not made, giving lenders the confidence that they will recover their investment.
Since its founding in 2017, SolarHome has bagged several investment rounds from notable investors. These included a US$10 million in debt funding from a consortium of international investors, including Crowdcredit and Trine, in 2018.
This was followed by a US$1 million for equity funding from TRIREC in 2019. Previously, it has also raised three rounds of fundings.