The funding will be used by PEG to expand its operations in Ghana, build out its management team, and commence operations in Ivory Coast.
In a press release, CEO of PEG, Hugh Whalan said, “We are thrilled to receive the support of new and existing investors, and to continue our vision to bring pay-as-you-go financing to the massive, and largely ignored, West African market. As a market leader in this region, where there are 35 million off-grid homes, we are uniquely placed to do this.”
The Series A investment (an A-2 round) was led by Energy Access Ventures with Blue Haven Initiative and existing investors, Investisseurs & Partenaires (I&P) and Engie Rassembleurs d’Energies, participating in the round.
The A-1 round of the investment – US$3.2 million – was raised by the startup last year, bringing the total funding received to US$7.5 million.
PEG provides loans for solar home systems and other useful assets to off-grid households in West Africa.
It is able to focus on off-grid customers, who are often rural and considered risky by banks and microfinance, because it provides loans using ‘pay-as-you-go’ technology.
PEG has over 10,000 customers and operates 29 service centres in 7 regions of Ghana.
PEG was founded in 2013 and headquartered in Florida, US with an office in Accra, Ghana.
“We are immensely proud to be investing in PEG. EAV was hugely impressed with PEG’s leadership team and greatly looks forward to working with the company and its other investors,” said Dr. Michael Gera, Managing Partner of EAV.