- Solar PV
- Business model
Investment Name: Nithio FI
Contract signature date: December 2020
Region: Sub Saharan Africa
Sector: SHS and Minigrids
Total ElectriFI Financing: USD 5m (4.10m EUR)
Environmental and Social Category: FI C
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Project overview: Nithio FI aims to provide innovative receivables backed financing solutions to companies providing energy access services to rural populations and support those companies in smartly deploying the capital to increase their impact in the most financially sustainable way.
They distinguish themselves from other financing facilities through their usage of data-driven predictive analyses. These analyses enable them to, on the one hand, accurately predict the payments and, therefore, the value of the existing portfolio of receivables. On the other hand, they offer a prospecting tool that can pinpoint the optimal regions for the operators to reinvest the proceeds they receive.
Funding objective and impact: EDFI ElectriFI’s funding to be part of the initial funding round that will unlock up to USD 15m senior debt and help the company prove its concept.
Why EDFI ElectriFI wants to fund this project: EDFI ElectriFI’s investment will catalyse senior lenders and will contribute to increasing the support of existing, well established SHS distributors as well as smaller local distributors in diverse markets. By combining accurate receivable valuation and sophisticated data science services, Nithio enables the SHS Operators to get access to cheaper capital and to learn how to allocate it more efficiently compared to what would have been previously possible.