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.

Olawoye, formerly the Chief Financial Officer (CFO) of Payhippo, will take the position, succeeding Zach Bijesse, who will transition to a role on the company’s board of directors.

With over 3,000 active SMEs on its platform and having disbursed over N30 billion to businesses of various scales, Payhippo has established itself as a key player in Nigeria’s fintech sector. The company has been key in supporting small businesses, which contribute significantly to Nigeria’s economy, constituting 48% of the national GDP and accounting for 96% of businesses and 84% of employment.

Under Olawoye’s leadership, the startup plans to focus its efforts on small businesses operating in the renewable energy sector. The company aims to assist these enterprises in scaling up their operations and creating job opportunities. As part of its expansion strategy, Payhippo will introduce new products, including asset finance and inventory finance, to cater to the specific needs of SMEs.

In a statement, Olawoye noted his enthusiasm for his new role: “I am deeply honored to become CEO of Payhippo. Payhippo is a leading player in Nigeria’s fintech sector, and I am excited to lead the company’s growth and continued support for small businesses across the country.”

One of Payhippo’s notable initiatives involves addressing a significant gap identified in the lower end of the solar equipment distribution chain. Leveraging its expertise in SME lending, Payhippo plans to bridge this gap by providing tailored financial solutions, thereby contributing to the growth of the renewable energy sector in Nigeria.

Outgoing CEO Zach Bijesse, who played an essential role in Payhippo’s journey, highlighted confidence in Olawoye’s ability to lead the company forward: “I’ve always believed that Payhippo has the potential to be a force for good in Nigeria, helping small businesses grow and create jobs. I’m confident that Dami will continue to lead Payhippo forward on this mission, and I’m excited to see what the future holds for the company.”

As Payhippo embarks on this new chapter under Olawoye’s leadership, the company remains focused on its core values of innovation, dignity, and putting people first. With a focus on empowering SMEs, Payhippo is set to make a significant impact on Nigeria’s business landscape.