Nigerian fintech startup Payhippo has rebranded as Rivy, changing its focus entirely to clean energy financing after raising a $4 million pre-Series A round to drive its expansion.
The funding, split evenly between $2 million in equity and $2 million in debt, comes as Rivy moves beyond traditional SME lending to tackle one of Africa’s major challenges—access to reliable and affordable energy.
The equity round was co-led by EchoVC, through its $2.5 million Eco Fund, and Shell-backed All On, while local debt providers supplied the rest.
This pivot wasn’t random. Over time, Rivy noticed a pattern where many of the SMEs it financed found it difficult to deal with the issue of electricity. Businesses couldn’t grow efficiently because they were at the mercy of unstable power supply. At the same time, solar installers faced their own limitations, lacking the capital to stock equipment in bulk.
“We realised that businesses weren’t just asking for loans—they needed a way to solve their power problems,” Dami Olawoye, Rivy’s CEO, explained. “At the same time, solar vendors needed capital to fulfil demand. So, we expanded into asset financing to bridge that gap.”
This insight led Rivy to build a dual marketplace, connecting over 250 solar vendors and installers with businesses looking for financing. Instead of selling solar products directly, Rivy provides tailored loans, allowing SMEs and larger businesses to spread the cost of solar power solutions over time.
Since shifting its focus in 2023, Rivy has seen strong demand despite the high upfront costs of solar systems. The company disbursed $2 million in loans in 2024 alone and has maintained a loan book growth rate of 15% per month.
Olawoye insists that Rivy’s lending model is sound, pointing to a non-performing loan (NPL) ratio below 1%—a rarity in Nigeria’s fintech space. “We built our underwriting engine, and it is clearly working well because our loan defaults are low,” he said.
For businesses struggling with electricity costs, the math is straightforward. Running on diesel generators or paying the revised electricity tariffs costs more in the long run than financing a solar system. “If they get financing from us, their monthly spend will be lower than what they pay on fuel,” Olawoye noted.
Rivy has expanded into micro-grid financing, which supports large-scale solar installations serving entire communities and commercial clusters. This aligns with the goal to increase clean energy adoption in Nigeria and beyond.
Loan terms are structured based on energy demand, installation logistics, and service charges. Interest rates typically start at 12% for a three-month term, increasing for longer durations. However, businesses must pay an initial deposit of at least 30% before accessing financing.
While equity funding helps startups grow, too much of it dilutes ownership. Debt financing, on the other hand, allows companies to scale lending without giving away too much control.
“Equity is expensive,” Olawoye admitted. “We can’t keep raising equity to lend money because everybody [shareholders] will keep getting diluted. If we want to raise future rounds, a structure we’re most likely to use will be one where we raise a combination of debt and equity.”
With this fresh injection of capital, Rivy plans to strengthen its footprint in Nigeria while exploring expansion into other African markets. The clean energy financing space is gaining momentum, and Rivy wants to be at the forefront.
The company is now offering loans and driving a shift towards long-term energy independence for businesses and communities.
