Rensource Energy, a renewable energy startup based in Nigeria, has raised $20 million for expansion in Nigeria and across Africa. The Series A round was co-led by CRE Venture Capital and the Omidyar network.
Rensource develops and manages critical infrastructure that powers the productivity of small and medium sized enterprises. Using the provision of solar-based microutilities as an entry point, Rensource provides tools and services to support the digitalization and productivity growth of SMEs in West Africa.
Launched in 2016, the startup has shifted its operating strategy. “We’ve pivoted away from a residential focus…and we’re building much larger systems to become essentially the utility for these large urban markets we have a lot of in Nigeria,” Rensource co-founder Ademola Adesina told TechCrunch.
In addition to becoming a micro-energy provider to Nigeria’s robust SME classes, the startup aims to offer them B2B services. With the $20 million round Rensource is launching its Spaces Offline to Online platform for supply-chain services, including business-analytics and working capital options.
“It’s a mini-ERP tool. We’re trying bring a universe of people who are banked, but…still offline — their products are offline, they don’t track anything, and there’s no data behind their business — online,” said Adesina.
Rensource’s micro-utility model deploys power clusters — made up of solar-panels, batteries, and a power management system — adjacent to markets and commercial hubs. The energy application isn’t totally clean, as the startup still uses its own diesel backup system.
Rensourse has used this model to become an off-grid energy provider in six states in Nigeria, and powers the Sabon Gari market — one of the the country’s largest, located in northern Kaduna state.
The company plans to expand to 100 markets within Nigeria and to additional African countries within 24 months, according to Adesina.
Rensource Energy generates revenue from charging merchants daily, weekly, or monthly fees. “In 2017, we did a few hundred thousand dollars in revenue. Last year we did about $7 million in revenue, and this year we’ll do better than that,” CEO Ademola Adesina said.
