Lagos-based renewable energy startup, Rensource, earlier today announced securing a new external investment to the tune of €500,000.
In the month of January this year, the renewable energy startup secured $3.5 million in bridge financing to expand the business. Based on that, we predicted that the startup might be on its way to a huge Series A funding round in the following months.
Far from the huge sum we anticipated, the new investment will still go a long way to providing access to electricity to as many Nigerians as possible.
Also important to note is that the new investment is coming as a loan from Trine Financial Limited, a financial service company that invests in solar energy markets involved in distribution and managing the solar products.
Besides its January investment, Rensource had secured a previous funding round of $1.1 million in 2016, thus bringing the total investment raised in external funding since that time to $5.5 million.
Rensource was founded with the mission to deliver affordable solar systems to households and businesses in Nigeria in order to replace the heavy usage of generators.
It introduced a tiered subscription-based business model in March 2017 that enabled customers to pay to use energy, rather than own the infrastructure. This means customers can save a lot of money by switching to solar.
Since it was founded in 2015, Rensource has managed well over 1500 paying customers.
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Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.
Lead Venture Analyst at Techpoint. Eager to tell startup stories that offer Nigerians the much needed creative solutions to relate-able problems. Get in touch.