Payhippo, a Nigerian fintech company that previously specialized in providing loans to small and medium-sized enterprises (SMEs), has undergone a significant rebranding and is now known as Rivy. The company has successfully raised $4 million in a pre-Series A funding round, which will enable it to pivot its focus towards clean energy financing solutions. This funding is evenly divided into $2 million in debt and $2 million in equity, allowing Rivy to expand its operations beyond Nigeria and offer innovative financing options for clean energy projects.
The equity portion of the funding round was co-led by EchoVC, a Nigerian venture capital firm that has invested in 38 African startups, through its $2.5 million Eco fund. This fund is dedicated to supporting initiatives in climate, energy, agriculture, and mobility. Shell’s All On, an organization focused on climate impact investments, also participated in the equity round. The debt financing was sourced from local debt providers, highlighting a collaborative effort to support Rivy’s new direction.
Rivy’s transition reflects a broader trend among African fintech companies that are seeking to address structural challenges by moving beyond traditional lending models. For instance, in 2020, Aella Credit in Nigeria expanded its micro-lending services to include healthcare, insurance, and bill payments, even experimenting with a blockchain-based lending solution called Creditcoin. Similarly, in 2023, the Kenyan micro-lender Branch evolved into a neobank following its acquisition of a microfinance bank.
Instead of directly providing clean energy solutions, Rivy has established a dual marketplace that connects over 250 solar vendors and installers with businesses in need of solar energy. This platform also offers financing options that allow businesses to spread the cost of solar systems over time, making renewable energy more accessible.
Dami Olawoye, the CEO of Rivy and former CFO of Payhippo, explained the motivation behind this shift;
When Rivy was an SME lender, we frequently encountered small businesses struggling with electricity access. We also recognized that solar installers lacked the necessary capital to purchase equipment in bulk. In June 2023, we introduced an asset financing solution that enables small businesses to acquire solar systems and manage the costs over a period.
Founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, Rivy initially focused on providing loans to SMEs in Nigeria. The company joined Y Combinator in 2021, which led to leadership changes in 2023, with Olawoye stepping up as CEO and Bijesse transitioning to a board position.
Despite the expansion of its product offerings, Rivy’s underwriting engine remains a cornerstone of its operations. Olawoye noted that the startup has maintained a non-performing loan (NPL) ratio of less than 1%, indicating effective credit risk management. “We built our underwriting engine, and it is clearly working well because our loan defaults are low,” he stated, although he refrained from disclosing specific figures.
Since its shift to clean energy financing, Rivy has experienced robust demand from businesses, even in the face of high solar system costs. In 2024, the company disbursed $2 million in loans and achieved an average monthly growth rate of 15% in its loan book, according to Olawoye. He emphasized the long-term financial benefits for businesses: “When you do the math, businesses will spend more in the long-term due to their high electricity demand. Financing from us to purchase a solar system will result in lower monthly expenses compared to what they currently pay for generator fuel or revised electricity tariffs.”
Rivy structures its loan terms based on factors such as electricity demand, logistics, and solar installation service charges. The interest rates for loans typically start at around 12% for a three-month term and increase with longer terms. However, businesses are required to make an initial deposit of at least 30% of the total loan amount before accessing the funds.
In addition to financing individual businesses, Rivy also supports micro-grids—large-scale solar installations that cater to clusters of businesses, communities, and households. While businesses remain the primary focus, the company has expanded its offerings to include consumer financing as well.
Olawoye explained the rationale behind the mix of debt and equity funding;
Debt is more aligned with our lending model. However, to secure debt financing, we needed to raise equity as well. Equity can be costly, and we cannot continuously raise equity to fund our lending operations without diluting our shareholders. For future funding rounds, we are likely to pursue a combination of debt and equity.
Looking ahead, Rivy aims to strengthen its presence in Nigeria while exploring opportunities for expansion into other markets. In the ongoing effort to provide reliable energy solutions for households and businesses, Rivy is determined to lead the charge in clean energy financing.
