SunFi, a Nigerian energy financial technology platform that connects people who want solar energy access to payment plans that match their needs has secured $2.33 million seed funding aimed at growing its operations and improve its capabilities .
The funding was secured from lead investors including Nairobi-based Factor[e] and SCM Capital Asset Management and participating investors such as Voltron Capital, Norrsken Impact Accelerator, Ventures Platform and Sovereign Capital.
According to Lyndsay Holley-Handler, partner and chief venture builder at Factor[e] on the investment,“SunFi has the ability to transform the way clean energy is accessed by households and businesses across Nigeria by creating a marketplace of clean energy products combined with flexible payment options — all of which are personalized to the customer’s financial and energy needs,”
“Platforms like these have unlocked access to clean energy in other markets but don’t yet exist in Africa. This type of innovation and disruption is why we decided to be part of SunFi’s journey…”,Lyndsay added.
Founded in 2021 by Rotimi Thomas (CEO), Tomiwa Igun (COO) and Olaoluwa Faniyi (CTO), SunFi is an energy financial technology platform that connects people who want solar energy access to payment plans that match their needs.
The startup also provides customers with two payment methods: a lease to own, where after an initial deposit, customers make payments in instalments before owing the solar system, and a subscription model, where customers pay to use the solar system monthly.
SunFi’s revenues are from the margin on the lease-to-own model and subscription fees from the latter. The company said it is working on a third revenue stream where it will assist solar providers with inventory financing.
SunFi creates value for these clean energy investors by de-risking the technical and credit risk involved in financing portfolios of solar solutions, opening avenues for lending as a service play for clean energy providers.
With this financing, the clean tech with fintech features will be looking to enhance its platform over the next 12-18 months. It also intends to convert more than 4,000 customers within that same time frame as the 29-person team grows. The clean tech is in talks to raise additional third-party capital, most likely debt, from commercial banks and other financing partners to channel that money through the system and finance all the energy platform’s demands to take care of this year.
