Rana Energy has raised a $3 million pre-seed round to scale an AI-powered digital utility model across Africa. The company targets unreliable electricity that affects hundreds of millions and drives heavy diesel dependence. Its Clean Energy-as-a-Service approach combines distributed solar, storage, and software to deliver cheaper, more reliable power.
Funding and Structure
The round consists of $500,000 in equity and a $2.5 million local currency green debt note. Equity participants include Techstars, EchoVC Eco, and angel investors linked to Africa’s mobility and tech ecosystem. The green debt was arranged by Optimum Global and is backed by FSDH Asset Management to accelerate asset deployment.
Model and Technology
Founded in 2023 by engineers Abraham Mohammed and Mubarak Popoola, the company is building the Virtual Solar Network. This AI-driven layer forecasts demand, aggregates projects into investable portfolios, and remotely manages asset performance. Customers access power through subscriptions with no upfront cost, converting savings into predictable monthly payments.
Early Traction
Rana reports 1.3 megawatts of installed solar and storage capacity across Nigeria within its first 18 months. The company cites 99.9 percent uptime, diesel reductions above 80 percent, and energy cost cuts of up to 30 percent. Clients range from federal institutions to essential service providers that cannot tolerate outages.
Market Opportunity
Africa’s distributed energy market is projected to reach $127 billion by 2030 as urbanization and demand outpace grid expansion. In Nigeria, an estimated 80 percent of businesses rely on diesel generators at roughly $0.40 per kilowatt-hour. Rana positions its subscription offering as a cleaner, cheaper, and more resilient alternative to diesel.
Expansion Plan
With fresh capital, the company plans to expand its asset base to 10 megawatts over the next 12 months. The rollout targets battery swap stations, hospitals, supermarkets, and industrial facilities in Nigeria, Ghana, and Zambia. Rana estimates the expanded portfolio will avoid more than 450,000 kilograms of carbon dioxide emissions annually.
Financing Strategy
The business blends venture equity with structured green debt to finance sub-1 megawatt systems at scale. By aggregating small sites into portfolios, the company aims to meet institutional mandates and lower financing costs. Management projects that each dollar deployed can unlock significant local economic value through savings and productivity gains.
Technology Differentiators
The Virtual Solar Network uses AI forecasting and optimization to improve solar plus storage performance and availability. GIS and drone-based mapping speed project origination by identifying high-potential rooftops and sites. Integrated tools for financing, asset management, mobile payments, and verified carbon tracking create a data-rich operating layer.
Company Background
Rana Energy is registered in Delaware and headquartered in Lagos, focusing on underserved communities, businesses, and public institutions. The company currently operates more than 1.3 megawatts of distributed clean power. Its long-term goal is to reach 1,000 megawatts by 2030 through portfolio scale and capital recycling.
Rana’s funding round, blended structure, and early metrics signal investor appetite for software-orchestrated distributed energy. The next year will test whether the model can scale to multiple markets while maintaining uptime and unit economics. If execution holds, the approach offers a repeatable pathway to replace diesel with AI-managed clean power across Africa.