SHYFT Power Solutions, a Nigerian IoT and data-driven software firm for distributed energy resource performance and operational efficiency, has raised an additional $3.1M in funding to bring its total seed round to $3.8M. to accelerate the transition of clean energy in emerging markets.
The round was led by the SoftBank Vision Fund’s Emerge Program and Total Carbon Neutrality Ventures with participation from other investors including Lofty Inc, Samurai Ventures and Urban US Ventures. Shyft will use the funding to more than double its team in West Africa to develop AI capabilities to use its data and algorithms for system optimization and also build out more corporate partnerships and expand across Africa.
“I was an engineering graduate student at Stanford at a time when solar was reaching grid parity and we were seeing advancement in distributed energy technologies. As a Nigerian-American with previous experience in infrastructure, I recognized that emerging markets have a unique opportunity to leapfrog over centralized grids and leverage advancements in clean, reliable and affordable alternatives to meet energy needs and at times work alongside centralized grids too”, said Co-Founder & CEO Ugwem Eneyo. “I founded SHYFT to build the technology that can enable and accelerate this transition, and ensure that on the path to reliable energy access, the use of cleaner solutions can mitigate carbon emissions as well. We are fortunate to have investors supporting us where their sector and global experience will be invaluable”.
Nearly 3.5 billion people lack access to reliable power. In many emerging markets, this has resulted in widespread dependence on back-up power systems like petrol or diesel generators. SHYFT aims to address the challenges in delivering and scaling clean, reliable, and affordable energy solutions in emerging markets that struggle with unreliable grids or energy access. SHYFT’s initial focus is in Nigeria, a country set to be the 3rd most populous only to China and India, but where an unreliable grid has led to widespread dependence on generators, accounting for nearly 8x the capacity of the grid.
SHYFT’s asset management solution delivers an integrated approach that uses algorithms to monitor, automate, and optimize how assets, as well as grid connections, are utilized individually and as an integrated system, aggregating a plurality of data streams while doing so. This helps users know what sources they use, how long they use a source, and when they switch sources, data which is important for decision making.
SHYFT works with firms such as Daystar Power Solutions and Aspire Power Solutions in Nigeria and managing over 2,000 kW of assets for its partners. Nearly every major bank in Nigeria has a branch using SHYFT technology, creating a path for SHYFT and its customers to deliver reliable power to the nearly 5,000 branches in the market.
Ademidun Edosomwan, Managing Director, Emerging Markets at Total Carbon Neutrality Ventures (TCNV), said: “Energy is an essential need for all, yet it is estimated that more than 3.5 billion people globally lack access to affordable and reliable electricity. SHYFT’s technology will play a critical role in a global movement to democratize the way people manage their power sources.”