Arnergy Raises $3 Million Funding to Boost Renewable Energy in Nigeria

Arnergy, a Nigerian cleantech company specializing in distributed renewable energy solutions, has secured $3 million bridge round investment from All On, a Shell-backed impact investor.

The fund will help Arnergy in capitalizing on the surging demand for solar energy in Nigeria, caused by rising fuel costs and an unreliable grid.

Founded in 2013, Arnergy has carved a niche as an innovator in the distributed energy sector, serving businesses and communities across diverse industries like telecom, healthcare, and agriculture.

Since inception, the startup asserts 10x revenue growth in the past five years, with over 7MW of solar PV systems deployed and over 5,000 tonnes of greenhouse gas emissions mitigated.

The recent removal of fuel subsidies in Nigeria sent diesel prices skyrocketing, highlighting the urgent need for cost-effective energy alternatives. Arnergy’s bridge round funding empowers them to address this challenge through a multi-pronged approach.

Offering long-term leases and energy-as-a-service agreements, Arnergy can make solar energy more attractive to businesses, shielding them from the volatility of fuel prices. This financial flexibility allows companies to transition smoothly to clean, reliable energy.

The company partners with mini-grid developers to expand its reach to offer comprehensive solar and battery products and services to a wider audience. This one-stop-shop approach simplifies the process for individuals and communities seeking to embrace renewable energy.

In establishing partnerships with installers and distributors, Arnergy aims to create a strong network that can offer high-quality, affordable solutions across the vast expanse of Nigeria. This ensures wider accessibility and empowers more people to benefit from clean energy.

Femi Adeyemo, Arnergy’s CEO, stated: “With this funding, we can offer affordable solar solutions, empower communities, and create a cleaner future for Nigeria.” This is inline with All On’s vision, whose CEO, Caroline Eboumbou, commended Arnergy’s focus on clean energy solutions and its alignment with All On’s goals.

Arnergy is preparing for its Series B funding round in Q1 2024, aiming to further expand its operations and deepen its impact.

With plans for sustainability and innovation, Arnergy wants to become Nigeria’s number one renewable energy company, offering hope for a brighter, cleaner future.