Arnergy is a cleantech firm that successfully raised $3 million in funding. It specializes in supplying solar power solutions to households and businesses. The purpose of the investment is to support the company’s plans to increase the reach of its renewable energy services throughout Nigeria.
Leading the funding round was All On, an off-grid energy impact investing firm supported by Shell. Five years after Arnergy closed a $9 million Series A round in 2019 with participation from illustrious companies including Norfund, ElectriFI, and Bill Gates’ Breakthrough Energy Ventures, this most recent investment represents a major turning point for the company.
Femi Adeyemo and Kunle Odebunmi founded Arnergy in 2013 with the goal of offering sustainable energy solutions that specifically address Nigeria’s recurrent and unstable grid problems. Their energy solutions serve enterprises and residential clients in a number of industries, including healthcare, education, hospitality, banking, and agriculture.
Femi Adeyemo, CEO of Arnergy, stressed that the latest fundraising drive is about more than just raising money. Rather, the business is putting itself in a position to profit from events like the elimination of fuel subsidies, the arrival of grid parity, and changes in the price of diesel. Adeyemo emphasized Arnergy’s dedication to capital efficiency, pointing out that since 2019, when many Nigerians didn’t think solar systems would be profitable, demand for them has increased.
As cost competitiveness finally makes sense, we are bullish on leases. After testing and trying it, we’ve found that the monthly cost of gas or diesel reduces the likelihood of default. That can essentially be switched to solar power. Four years ago, this was not the case: even if you were leasing solar for five years, your payments would still be greater,” the man stated.
Arnergy intends to use mini-grid developers to continue providing its services throughout all 36 states in Nigeria. In addition, the business is getting ready to close its Series B investment this quarter, with the goal of growing its operations and accelerating the use of renewable energy products in and out of Nigeria.
Expressing confidence in Arnergy’s potential, Caroline Eboumbou, CEO of All On, stated, “We are proud of our partnership with Arnergy over the past years. With this partnership, we have been able to achieve some of our goals to empower communities and create a cleaner future for Nigeria. Arnergy exemplifies the impact we strive to achieve at All On, innovative solutions, unwavering commitment to sustainability, and a relentless focus on social impact.”
“This investment reaffirms our confidence in their ability to scale their operations and accelerate the adoption of clean energy in Nigeria and beyond.”
