SunFi, a Nigerian clean tech startup, announced that it has raised $2.325 million in seed funding to grow its operations. The funding round was led by Nairobi-based Factor[e] and SCM Capital Asset Management with Voltron Capital, Norrsken Impact Accelerator, Ventures Platform and Sovereign Capital participating in the round.
SunFi is an energy financial technology platform that connects people who want solar to payment plans that match their needs. It was founded in 2021 by CEO Rotimi Thomas, COO Tomiwa Igun and CTO Olaoluwa Faniyi on the back of experience garnered from Rotimi’s experience at Aspire, a solar installation company he co-founded in 2018.
Solar power customers want a payment plan that they can afford to pay in instalments while solar power investors want a platform that will manage the risk in dealing with this kind of funding.
According to Thomas in a chat with Techcrunch, “the challenge customers face with solar providers is that they want solutions they can pay small for; however, these solar platforms can’t offer. Because banks are afraid of the technical risk involved, they need something in between to talk with good solar providers and do the installation work while providing good capital to customers looking for the right solution. We’re the guys in the middle of all this.”
SunFi adds value to clean energy investors by reducing the technical and credit risk associated with financing portfolios of solar solutions, enabling lending services for clean energy providers.
SunFi has enlisted over 40 solar system vendors, with 10 being its key suppliers, to its platform for varying levels of verification. These core providers have served over 129 clients. SunFi reports that it has provided more than $600,000 to these clients in the past year through its financial institution partnerships.
The Nigerian energy firm offers its customers two payment options: a lease-to-own, where a initial deposit is made followed by installment payments until ownership of the solar system is achieved, and a monthly subscription model where customers pay to use the system. SunFi generates revenue through the margin on the lease-to-own option and subscription fees from the latter. It is also exploring a third source of revenue by offering inventory financing support to solar providers.
With the new financing, the fintech-powered clean tech firm plans to improve its platform in the next 12 to 18 months. It aims to onboard over 4,000 customers during that same period while expanding its current 29-person team. The company is also negotiating to raise additional capital, likely in the form of debt, from commercial banks and other financial partners to finance its energy platform’s needs for the year.
