Payhippo pivots to energy financing, rebrands as Rivy after $4M raise

The news 

• Payhippo rebrands as Rivy to focus on clean energy financing.
• Secures $4 million to support expansion into the energy financing sector.
• The pivot aligns with growing climate tech investments in Africa and reflects challenges in SME lending within the Nigerian fintech landscape.

Nigerian fintech startup Payhippo has rebranded as Rivy and secured $4 million in funding to support its expansion into clean energy financing. EchoVC co-led the $2 million equity round alongside All-On, while debt was provided by local institutions.

This transition marks a significant shift from its original focus on providing loans to small and medium-sized enterprises (SMEs) toward addressing the continent’s energy needs.

The decision to pivot comes amid the complex realities of SME lending in Nigeria. While the sector presents substantial opportunities, it also carries notable risks.

For instance, digital banks like Kuda have experienced significant losses in their lending operations. In 2022, Kuda reported a net loss of $32 million despite a 190% surge in revenue to $22 million.

Conversely, the climate tech sector in Africa has witnessed remarkable growth, attracting increasing investor interest.

By September 2024, climate tech startups had raised approximately $413.9 million, accounting for a third of all startup funding on the continent and surpassing fintech as the leading investment sector. This surge highlights a strategic opportunity for Rivy to align its operations with a sector poised for sustainable growth.

With the new funding, Rivy aims to facilitate access to clean energy solutions for underserved communities and businesses.

The company’s focus on energy financing is timely, considering the growing emphasis on renewable energy initiatives across Africa. Recently, the European Union committed $35 million in grants to support South Africa’s green hydrogen plans.

Rivy’s rebranding and pivot underscore a broader trend among African fintechs seeking to diversify their offerings and align with sectors that promise both growth and impact.

By transitioning from SME lending to clean energy financing, Rivy not only addresses a critical need but also positions itself within a burgeoning market that aligns with global sustainability goals.