Nigerian fintech startup Payhippo has raised $4 million in pre-Series A funding as part of its rebranding initiative to Rivy, with a renewed focus on clean energy financing for businesses.
The funding round includes $2 million in equity and $2 million in debt financing, co-led by EchoVC and Shell-funded impact investor All On. Other participants in the round include existing investors such as Ventures Platform and early-stage fintech investors.
Founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, Payhippo initially focused on providing loans to small and medium-sized enterprises (SMEs) in Nigeria. However, after identifying a significant demand for reliable electricity among its clients, the company has now shifted its focus to financing solar power solutions for businesses.
Rivy will now serve as a clean energy financing platform, helping SMEs access solar energy by providing affordable financing solutions. The company will operate a marketplace connecting businesses with over 250 solar vendors and installers, allowing them to spread the cost of solar systems over time.
Dami Olawoye, CEO of Rivy, highlighted the importance of the pivot:
“When Payhippo was primarily an SME lender, we realized that the biggest challenge these businesses faced was unreliable electricity. By shifting our focus to clean energy financing, we are addressing a fundamental issue that directly impacts business productivity and economic growth.”
In addition to financing solar solutions for individual businesses, Rivy will also fund micro-grids that provide power to business clusters and communities.
With this funding, Rivy plans to scale its operations across Nigeria and explore expansion into other African markets with similar energy challenges. The company aims to accelerate access to renewable energy solutions for businesses that struggle with unreliable electricity from the national grid.
EchoVC, one of the lead investors, expressed confidence in Rivy’s new direction, stating that the company’s transition to clean energy financing aligns with the increasing demand for sustainable power solutions in Africa.
Rivy’s rebrand marks a strategic shift in Nigeria’s fintech landscape, reflecting a growing trend of startups leveraging financial technology to solve real-world infrastructural challenges. As Rivy expands its clean energy financing model, it is set to play a crucial role in bridging the energy gap for SMEs and promoting sustainable business growth in Nigeria.
Startups in Africa have increasingly been diversifying their focus beyond traditional financial services, with a strong push toward impact-driven solutions. Rivy’s transformation stands as a testament to the evolving nature of fintech innovation on the continent.
Read more on Tech Gist Africa:
Raenest, a Nigerian fintech startup has raised $11 million in Series A funding
Accrue, a Nigerian fintech startup has raised $1.58 million in seed funding
LemFi, a Nigerian fintech startup, has raised $53 million in its Series B funding round
