Nigerian cleantech firm, Arnergy, specializing in decentralized renewable energy solutions, has successfully secured a $3 million bridge round investment from All On, an impact investor supported by Shell. The investment aims to enable Arnergy to capitalize on the increasing demand for solar energy in Nigeria, driven by escalating fuel expenses and an unreliable power grid.
Established in 2013, Arnergy has positioned itself as a pioneer in the distributed energy sector, catering to businesses and communities across various industries, including telecom, healthcare, and agriculture.
Since its inception, the startup reports a remarkable 10x growth in revenue over the past five years. It has deployed over 7MW of solar PV systems, contributing to the mitigation of more than 5,000 tonnes of greenhouse gas emissions.
The recent elimination of fuel subsidies in Nigeria has led to a surge in diesel prices, underscoring the critical need for cost-effective energy alternatives. Arnergy’s bridge round funding enables the company to address this challenge through a multi-faceted strategy.
By offering long-term leases and energy-as-a-service agreements, Arnergy aims to make solar energy more appealing to businesses, providing a shield against the volatility of fuel prices. This financial flexibility facilitates a smooth transition for companies towards cleaner and more reliable energy sources.
In collaboration with mini-grid developers, Arnergy seeks to extend its reach by providing comprehensive solar and battery products and services to a broader audience. This comprehensive approach simplifies the process for individuals and communities looking to adopt renewable energy solutions.
Through partnerships with installers and distributors, Arnergy aims to build a robust network capable of delivering high-quality and affordable solutions across Nigeria. This strategy ensures wider accessibility, empowering more people to embrace clean energy.
Femi Adeyemo, Arnergy’s CEO, expressed, “With this funding, we can offer affordable solar solutions, empower communities, and create a cleaner future for Nigeria.” This aligns with All On’s vision, and CEO Caroline Eboumbou commended Arnergy for its focus on clean energy solutions and alignment with All On’s goals.
Arnergy is gearing up for its Series B funding round in Q1 2024, with plans to expand its operations and deepen its impact. With a commitment to sustainability and innovation, Arnergy aspires to become Nigeria’s leading renewable energy company, fostering hope for a brighter and cleaner future.
Joan Aimuengheuwa From The News Source: Techeconomy
