Access to financing is a significant barrier to the expansion of small and medium-sized enterprises (SMEs) across Africa. In Nigeria, a startup has emerged to tackle this challenge, concentrating its efforts on the renewable energy industry.

Nigerian fintech startup PayHippo, founded in 2019 by Chioma Ruky Okotcha, Uche Nnadi, and Zach Bijesse, announced Wednesday it has rebranded as Rivy and the closing of a $4 million funding round.

Rivy will use the new capital to expand its offerings and increase its impact across Africa, focusing on providing tailored financing to small and medium-sized enterprises (SMEs) and enhancing risk management through technology.

The Lagos-based company aims to streamline access to financing for African SMEs, particularly those in the renewable energy sector.

"Renewable energy is not just a necessity for today, but an investment in Africa’s future. With over 600 million people in sub-Saharan Africa lacking access to reliable electricity, clean energy solutions are crucial to driving economic growth, improving livelihoods, and combating climate change," said Dami Olawoye, Rivy's CEO.

Rivy leverages data analysis algorithms to assess company creditworthiness, offering loans without the stringent collateral requirements of traditional banks, enabling SMEs to secure funding quickly.

By integrating with various financial data sources, Rivy analyzes business transactions and cash flows in real-time, facilitating rapid credit decisions, customized loan structures, and flexible repayment options.

The startup reports over 5,000 users since its inception, more than $2 million disbursed  in renewable energy financing, and over 36,000 loan transactions.

By Adoni Conrad Quenum,

Editing by Feriol Bewa