Payhippo, a Nigerian fintech startup that once focused on lending to SMEs, announced on Wednesday that it evolved its name to Rivy, signalling a strategic move towards funding sustainable energy. This rebranding is accompanied by a $4 million funding round, which will be used to expand Rivy’s clean energy financing solutions across Africa.
Payhippo rebrands and undergoes strategic shift
Payhippo, founded in 2019, initially focused on providing short-term loans to small and medium-sized enterprises (SMEs) in Nigeria. However, with the growing demand for renewable energy solutions, the company saw an opportunity to leverage its lending expertise in supporting the clean energy transition.
The rebrand to Rivy reflects this transformation, symbolising the company’s commitment to powering Africa’s path to a cleaner and more sustainable energy future.
The name Rivy is inspired by the ancient Hindi word for “sunlight” and “brilliance,” underscoring its mission to drive Africa’s clean energy transition.
Dami Olawoye, CEO of Rivy, highlighted the company’s evolution, stating, “When Rivy was an SME lender, the recurring theme we found with small businesses that came to us for loans was their lack of electricity. We also noticed that solar installers didn’t have booking capital to buy equipment in bulk. We expanded to an asset financing solution in June 2023 to allow these small businesses to buy solar systems and spread the costs over a period of time”.
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Rivy lands $4m to expand clean energy financing beyond Nigeria
Local debt lenders contributed the $4 million in investment, which was co-led by EchoVC and Shell’s All On and divided equally between $2 million in debt and $2 million in equity.
With this investment, Rivy will be able to provide clean energy financing options outside of Nigeria, linking more than 250 solar installers and vendors with companies and providing loans to spread out the cost of solar systems over time.
Rivy’s financing solutions include inventory financing for solar vendors, asset financing for individuals and businesses, micro-grid financing for community projects, and carbon finance solutions. Despite the high cost of solar systems, the company has already seen strong demand from businesses, disbursing $2 million in loans in 2024 and growing its loan book at an average of 15 per cent per month.
“We’re thrilled to back Rivy as they scale their efforts in Nigeria’s renewable energy sector. Rivy’s approach is exactly what Africa needs to address its energy access challenges, syndicate reach to households and businesses, and build a sustainable, low-carbon future,” said Taiwo Ketiku, Principal, EchoVC Eco.