Simpa Networks, which sells solar-as-a-service to energy-poor households and micro-enterprises in rural India, announced that it has completed a $4 million debt financing round. The financing has been provided by Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, and by GDF Suez through their Rassembleurs d’Energies programme.
An estimated 400 million people in rural India still do not have access to electricity. Distributed solar-powered electricity systems are dramatically improving the quality of life for energy-poor families and promoting economic activity by enabling small businesses to extend their working days.
“Rural India is rising, and we are creating new opportunities to invest in its growth”, said Paul Needham, President and Co-Founder of Simpa Networks. “This new debt investment will help us scale our for-profit solution to the problem of energy-poverty. It validates our model and proves a pathway to mobilize commercial debt capital at scale.”
Simpa operates in rural Uttar Pradesh. The new debt facility will enable Simpa to reach 200,000 people with clean, reliable electricity services. “Simpa’s inclusive approach to spreading energy access makes them an ideal partner for OPIC’s impact-focused development investment strategy,” said Elizabeth Littlefield, OPIC’s President and CEO.
“Globally, more than one billion people lack access to modern electricity. We invest in for-profit solutions that can scale to meet this challenge,” said Jérôme Broutin, CFO at GDF Suez Rassembleurs d’Energies.