Rivy Secures $4M Pre-Series A to Expand Clean Energy Financing in Africa
Rivy, formerly known as Payhippo, has rebranded and secured $4 million in pre-Series A funding to scale its clean energy financing solutions for businesses. The Nigerian fintech startup raised $2 million in equity and $2 million in debt, positioning itself to expand beyond Nigeria and support more businesses in adopting solar energy.
Key Investors and Strategic Focus
The equity round was co-led by EchoVC through its $2.5 million Eco fund and Shell’s All On, a climate-focused impact investor. Debt funding came from local debt providers, enabling Rivy to offer flexible solar financing solutions to businesses and micro-grids.
Why the Shift to Clean Energy Financing?
Rivy identified electricity shortages as a major challenge for SMEs seeking loans. Additionally, solar vendors lacked the upfront capital to stock inventory. In response, Rivy launched its solar asset financing solution in June 2023, allowing businesses to purchase solar systems with structured payment plans.
“When we were an SME lender, we saw a recurring challenge, businesses struggled with power supply,” said Dami Olawoye, CEO of Rivy. “Solar installers also needed financing to buy equipment. We expanded our model to provide asset financing for solar solutions.”
How Rivy’s Clean Energy Financing Works
Rather than selling solar systems directly, Rivy operates a dual marketplace, connecting over 250 solar vendors and installers with businesses while offering solar loans that spread payments over time. Loan terms are structured based on:
- Electricity demand
- Logistics & installation costs
- Solar service charges
Loan interest rates start at 12% for a three-month term, increasing with longer repayment periods. Businesses must make an initial deposit of at least 30% before accessing financing.
Growth & Market Impact
Since shifting to clean energy financing, Rivy has:
- Disbursed $2 million in loans in 2024
- Grown its loan book by 15% monthly
- Maintained a non-performing loan (NPL) ratio below 1%
“Businesses will spend less on solar financing than they do on fuel or rising electricity tariffs,” added Olawoye.
Future Plans and Expansion
Beyond business financing, Rivy is now funding micro-grids and large-scale solar projects that power business clusters, communities, and households. While Nigeria remains its primary market, the company is exploring expansion into other African countries.
To scale its lending operations, Rivy opted for a mix of debt and equity funding.
“Equity is expensive,” Olawoye explained. “We need a balance, as raising only equity leads to shareholder dilution. Our future funding will likely combine debt and equity.”
