By Susan Olalere 
Rivy, formerly known as Payhippo, has announced a strategic rebrand alongside a $4 million pre-Series A funding round to scale its clean energy financing solutions across Nigeria and beyond. The funding, split evenly between $2 million in debt and $2 million in equity, will enable Rivy to expand its offerings, supporting businesses and solar vendors in bridging Nigeria’s energy gap.
A Strategic Shift: From SME Lending to Clean Energy Financing
Rivy’s transformation reflects a wider trend among African fintechs moving beyond traditional lending to tackle structural economic challenges. The company’s new business model focuses on financing solar solutions for businesses, offering a dual marketplace that connects over 250 solar vendors and installers with enterprises in need of clean energy.
“When we were an SME lender, we noticed that a recurring challenge for businesses was their lack of reliable electricity. Meanwhile, solar installers also struggled with working capital. Our pivot to clean energy financing in June 2023 bridges these gaps,” said Dami Olawoye, CEO of Rivy.
Rivy allows businesses to access affordable solar solutions through asset financing, enabling them to spread payments over time rather than making large upfront investments.
Backing from Climate-Focused Investors
The funding round was co-led by EchoVC, a Nigerian venture capital firm investing in climate, energy, and mobility solutions, and Shell’s All On, a climate-focused impact investment organization. The debt portion was secured from local debt providers, reflecting investor confidence in Rivy’s lending model.
“Equity is expensive. We can’t keep raising equity to lend money because shareholders will keep getting diluted. Our future funding rounds will likely maintain a debt-equity mix,” explained Olawoye.
Rivy’s Impact on Nigeria’s Energy Sector
Since shifting focus, Rivy has seen strong demand from businesses, disbursing $2 million in loans in 2024, with its loan book growing at 15% per month. Businesses are opting for Rivy’s financing model as it helps them reduce long-term electricity costs compared to diesel generators or rising grid tariffs.
Rivy structures its loans based on:
- Electricity demand and consumption needs
- Logistics and solar installation costs
- Initial deposit requirement (30% of the loan amount)
Loan interest rates start at 12% for a three-month term, adjusting based on repayment duration. Beyond financing individual businesses, Rivy is also funding micro-grids—large-scale solar installations that power business clusters and communities.
The Road Ahead: Expansion Plans
Looking beyond Nigeria, Rivy aims to expand into other African markets, leveraging its underwriting engine, which has kept non-performing loans (NPLs) below 1%.
As Africa’s energy crisis continues to challenge economic growth, fintech innovations like Rivy’s clean energy financing model could play a critical role in enabling businesses and communities to transition to sustainable energy solutions.
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