This fresh injection of capital comes on the heels of Arnergy’s $9 million Series A round in 2019, backed by All On, Breakthrough Energy Ventures, ElectriFI, and Norfund.

Founded in 2013 by Femi Adeyemo and Kunle Odebunmi, Arnergy provides businesses and homes with clean and reliable energy through solar power systems and other renewable energy solutions.

They currently operate across all 36 states of Nigeria, collaborating with mini-grid developers to expand their reach.

“This recent funding is not just about raising capital,” explains CEO Adeyemo.

“We’re strategically waiting for specific market triggers like the removal of fuel subsidies, grid parity with on-grid prices, and stabilizing diesel costs before launching our Series B round, expected to close within this quarter.”

Adeyemo emphasizes Arnergy’s commitment to capital efficiency and highlights the company’s shift towards offering more leasing options, recognizing the growing demand for solar solutions due to their increasing economic viability.

Nigeria’s unreliable grid system, with power output dropping to 93.5% in late 2023, has fueled the demand for off-grid alternatives.

In fact, Nigeria led the West African solar market in Q2 2022, accounting for 78% of all sales, with a staggering 450% increase in solar product sales observed between 2017 and 2022.

This latest funding empowers Arnergy to capitalize on the surging demand for renewable energy solutions in Nigeria and contribute to a cleaner, more sustainable future for the country.