Nigerian off-grid solar energy startup Rensource Energy has raised $20 million in a fresh round of funding to provide solar energy to local markets.
The funding round for Rensource Energy was led by CRE Venture Capital and Omidyar Network. Other investors who took part in the funding round are Inspired Evolution, EDPR, Sin Capital, I&P, and Proparco that took part in the landmark funding round.
Notably, the funding round for Rensource Energy was the biggest when it comes to a renewable energy startup in Nigeria.
According to media reports, the startup will use the funding to expand its operations in Nigeria and also expand its offering beyond energy and enter into Nigeria’s nascent offline to online (O2O) space. It will offer technology-enabled value-added services to SMEs in the marketplaces it provides power for.
Ademola Adesina, founder, and chief executive at Rensource told the media, “We believe that simultaneously greening and decentralising its power infrastructure is the only way to navigate Nigeria out of its current state of energy poverty. Pursuing this with a focus on the millions of small businesses that drive our economy creates a massive multiplier effect whose benefit accrues to all.”
He added, “Our push into O2O is a natural step that leverages our existing infrastructure to further empower the merchants we serve. We aim to bring connect over one-million merchants in the next 5 years.”
Founded in 2016, the startup previously raised had previously raised $579000 in debt financing in 2018. It is Nigeria’s fastest-growing provider of off-grid energy, providing energy to the country’s small and medium-sized enterprises. Currently, it operates in the Nigerian cities of Lagos, Kano, Ogun, Ondo, Oyo, and Edo.