Rensource, a Lagos-based distributed energy provider, announced that it has raised $3.5 million USD in bridge financing to grow its power-as-a-service renewable energy business by expanding across Nigeria.
According to the company, the funds will be put towards growing the Rensource team, expanding Nigeria operations into Kano and Abuja, and widening its product base. In addition, this investment will allow Rensource to launch its B2B focused Powered by Rensource offering, a new service that aims to enable businesses throughout Nigeria to leverage Rensource’s infrastructure to pursue energy independence.
The round was led by Amaya Capital Partners. Other key investors included the Omidyar Network and CRE Venture Capital.
“Off-grid power is the future of the energy industry and probably the only way through which many people and small businesses will be able to access power for their everyday needs at an affordable price,” said Sundeep Bahanda of Amaya Capital Partners. “We are excited to support Rensource in our joint endeavours to help build the continent’s leading off-grid business and provide electricity to millions of people across Africa,” he added.
Rensource, founded in 2015, is a Nigerian provider of predictable energy on-demand in a region hindered by insufficient power infrastructure. According to the company, its tiered, subscription-based energy service offers clean, quiet, seamless power, freeing households and businesses from unreliable public energy providers and toxic diesel generators. The funding now positions Rensource for profitable growth in the Power-as-a-Service renewable energy market in West Africa.
“This investment further affirms the growing consensus that renewables-based distributed energy generation — taking power to the people — is the future of Nigeria’s power industry. Rensource is uniquely placed to lead this charge. We’re excited to welcome Amaya Capital and the Omidyar Network on this journey and are proud to be enabling Nigerians’ power independence,” says Anu Adasolum, General Manager of Rensource.
Nigerian households and businesses spend an estimated $14 billion per year generating their own power using energy from diesel generators is neither affordable nor sustainable. Mini-grids and home solar PV systems represent a $9.2 billion a year market opportunity, saving Nigerians $4.4 billion in energy costs annually. The country’s Rural Electrification Agency (REA) plans to rollout 1,200 mini-grids to serve 200,000 households and 50,000 businesses.
“Each investment we receive is an endorsement of our core belief that distributed power generation will be a critical element in solving the power problem in Nigeria,” says Bola Ogidan, Chief Revenue Officer at Rensource. “The social benefits and positive ramifications will be something to behold and we at Resource are proud to be playing our part in what could be a true energy revolution.”
Rensource previously raised a $1.1 million USD seed round also funded by CRE Venture Capital and Sissili Limited, among others.