Nigerian Cleantech Startup Arnergy Raises $3 Million to Expand Operations
Arnergy, a Nigerian cleantech company that offers sustainable solar solutions that are tailored to address pressing energy needs, has announced the raise of $3 million in funding to expand operations.
The funding round was financed by All On, a Shell-backed off-grid energy impact investment company. The financing comes five years after Arnergy, secured $9 million in Series A round in 2019.
Backed by Bill Gates, Arnergy continues to scale and lead the drive to close the burgeoning demand-supply gap for solar systems in Nigeria, with its recent funds raised.
Speaking on the funding round, Arnergy’s CEO, Femi Adeyemo, said,
“We are now bullish on leases given that cost competitiveness now makes sense. We’ve tested and tried it, and the chance of default is now lower because of the monthly expense of petrol or diesel. You can more or less switch that for solar. It wasn’t the case four years ago where you will be paying higher even if you’re on a five-year lease to own solar,”
According to him, Arnergy plans to maintain its service provision across all 36 states where it operates in Nigeria through min-grid developers. Additionally, Arnergy is preparing to raise its Series B round, which is scheduled to close this quarter. The upcoming funding round aims to facilitate further expansion of its operations and accelerate the adoption of its renewable energy products and solutions within and outside Nigeria.
Also commenting on the latest raise, All On CEO, Caroline Eboumbou, in a statement said,
“We are proud of our partnership with Arnergy over the past years. With this partnership, we have been able to achieve some of our goals to empower communities and create a cleaner future for Nigeria. Arnergy exemplifies the impact we strive to achieve at All On, innovative solutions, unwavering commitment to sustainability, and a relentless focus on social impact. This investment reaffirms our confidence in their ability to scale their operations and accelerate the adoption of clean energy in Nigeria and beyond.”
Founded in 2013 by Femi Adeyemo and Kunle Odebunmi, Arnergy was launched as a provider of sustainable energy services intended to deliver clean and reliable energy for businesses or homes.
The company’s energy systems are tailored to tackle intermittent and grid unreliability issues, enabling residential customers and businesses across hospitality, education, finance, agriculture, and healthcare to access and install affordable and reliable distributed energy systems.
Arnergy seeks to address these pressing challenges of expanding sustainable energy access and reducing Carbon dioxide (CO2) emissions in Africa by providing best-in-class clean energy solutions, establishing flexible financing partnerships to ease consumers’ transition to renewables, and prioritizing continuous consumer education drives.
Looking ahead, the startup is gearing up to raise its Series B round, aimed at scaling its operations further, deepening its impact, and catalyzing the adoption of quality, affordable renewable energy products and solutions within and beyond Nigeria’s borders.
