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.
Nigerian startups raised $178m from 166 deals in 2018. Find out more when you purchase Techpoint’s Nigerian Startup Funding Report 2018 here.