Rensource, which provides modern energy infrastructure to households and businesses in West Africa, announced today that it has raised $3.5 million in a bridge financing round. The round was led by Amaya Capital with participation from the Omidyar Network and CRE Venture Capital. This funding round adds to the $1.1 million seed round previously raised from CRE Venture Capital and Sissili Limited, among others.
Rensource will use the capital to grow the Rensource team, build new Nigeria operations in Kano and Abuja, and expand its product offering to larger systems. In addition, this investment will allow Rensource to launch its B2B-focused Powered by Rensource offering, a new service that enables businesses throughout Nigeria to leverage Rensource’s infrastructure for energy independence.
In Nigeria, Africa’s most populous nation, mini-grids and home solar PV systems represent a $9.2 billion a year market opportunity. Nevertheless, 50% of Nigeria lack regular – if any – access to reliable energy sources. That Nigerian households and businesses spend an estimated $14 billion per year generating their own power using energy from diesel generators is neither affordable nor sustainable. Mini-grid systems, however, could save Nigerians $4.4 billion in energy costs annually. The country’s Rural Electrification Agency (REA) plans to roll out 1,200 mini-grids to serve 200,000 households and 50,000 businesses. Rensource offers a tiered, subscription-based energy service that brings clean, quiet, seamless power to households and businesses, freeing users from unreliable public energy providers and toxic diesel generators.
“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. 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,” says Anu Adasolum, General Manager of Rensource.
Led by a team of seasoned entrepreneurs, executives, and company-builders, Rensource is on track to provide 15,000 new connections to clean, affordable energy to a mix of SMEs and residential households throughout Nigeria in 2018. Headquartered in Lagos, Rensource has extensive operations in Kano and Abuja.
“Off-grid power is the future of the energy industry and probably the only way through which many people and small businesses will be able to access power for their everyday needs at an affordable price,” says Sundeep Bahanda of Amaya Capital Partners. “We are excited to support Rensource in our joint endeavours to help build the continent’s leading off-grid business and provide electricity to millions of people across Africa.”
This new round of funding now positions Rensource for profitable growth in the Power-as-a-Service renewable energy market in West Africa.
About Rensource
Rensource is a distributed energy provider in West Africa, offering predictable energy on-demand in a region hindered by insufficient power infrastructure.
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