Tanzania-based solar power provider Off Grid Electric secured $25m in series C funding on Thursday from investors including solar system installer SolarCity.
The round was led by venture capital firm DBL Partners and included Omidyar Network, Serious Change, Western Technology Investment, Tope Lawani and Vulcan Capital, which invests on behalf of Microsoft co-founder Paul Allen.
Off Grid Electric operates a solar leasing platform that allows users not connected to larger power grids to pay as little as $1 per day for solar power.
The company, which is looking to enter the Rwandan market, has formed a partnership with the Tanzanian government to provide energy to one million homes in the next three years.
Xavier Helgesen, co-founder and CEO of Off Grid Electric, said: “We are in the midst of a solar revolution in Africa. The success of our pre-paid leasing model in Tanzania has global implications and demonstrates that universal energy access is achievable.”
Off Grid Electric has now raised $48m in funding altogether, having closed a $16m series B round backed by SolarCity, Vulcan Capital and Zouk Capital in December 2014. It had already received $7m in a March 2014 series A round.
The series A round included SolarCity, Vulcan Capital, Omidyar Network, Africa Enterprise Challenge Fund, BWE-JV Investments, Givia, Jasmine Social Investments, Marshall Foundation, Mulago Foundation, Segal Family Foundation, Serious Change and The World We Want Foundation.
Nancy Pfund, founder and managing partner of DBL Partners, will join Off Grid Electric’s board in conjunction with the series C round. She is already a board member of SolarCity.