Rensource raises $3.5m to take affordable renewable energy to more Nigerians

by | Jan 30, 2018

Rensource, a Lagos-based renewable energy startup, has raised $3.5 million in bridge financing to expand its business. This is coming nearly 2 years after a previous seed round of $1.1m in 2016.

This new round is led by Mauritius-based Amaya Capital Partners, with participation from Omidyar Network and Pule Taukobong‘s CRE Venture Capital, which previously led Andela’s $40m Series C round. Interestingly, CRE Venture Capital participated in the original seed round for Rensource.

Founded in 2015 by Ademola Adesina and Jussi Savukoski, Rensource is hinged on a core belief that distributed power generation will be a critical element in solving the power problem in Nigeria.

Damilola Ogunbiyi, CEO of the Rural Electrification Agency agrees. According to her, “Nigerians spend about $14 billion annually on inefficient power generation. Off-grid alternatives like creating mini grid and solar home systems can easily be at $9.2 billion a year, which will save the Nigerian public and citizens $4.2 billion.”

In March 2017, Rensource introduced a tiered subscription-based business model that enabled customers pay to use energy, rather than own the infrastructure. The idea was to provide affordable renewable energy on a ‘Power-as-a-Service’ (PaaS) basis.

rensource powerbox

A Rensource Powerbox

The new capital injection will primarily go into expanding operations to Kano and Abuja. There are also plans to capture the B2B market with a ‘Powered by Rensource’ offering that will enable Nigerian businesses leverage its infrastructure.

“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,” says Anu Adasolum, General Manager of Rensource. “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”.

Going by the nature of the investment (bridge financing), it probably is not far-fetched to expect a huge Series A funding round in the coming months, should Rensource deliver quickly on its short-term goals.

Chief Servant at | Website

I bully myself because I make me do what I put my mind to.

Preliminary nominations for Techpoint Awards 2021 are now open. You can nominate the most outstanding startups, entrepreneurs, investors, and technology influencers in Nigeria here.

Notify of
Inline Feedbacks
View all comments

Recent News

5 ways to support Techpoint Africa

5 ways to support Techpoint Africa

If you value the work we do at Techpoint Africa and would like to help ensure that the core of our journalism remains free and independent, please consider these 5 ways to support us

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap