Rana Energy, a Nigeria-based clean energy technology company, has secured $3 million in pre-seed funding to accelerate the development of its AI-powered digital utility platform aimed at expanding access to reliable and affordable electricity across Africa.

The company, founded in 2023 by engineers Abraham Mohammed and Mubarak Popoola, operates an AI-driven Clean Energy-as-a-Service model designed to tackle the continent’s persistent energy challenges.

Rana’s platform, which is known as the Virtual Solar Network (VSN), uses data intelligence to forecast power demand, manage distributed solar and storage systems, and create investment portfolios for clean energy projects.

Rana Energy, in a statement this week, said the funding round includes $500,000 in equity investments from Techstars, EchoVC Eco, and a group of angel investors, including MAX co-founders, Chinedu Azodoh and Tayo Bamiduro.

It added that the balance of $2.5 million was raised through a local currency green debt note arranged by Optimum Global and backed by FSDH Asset Management.

The company said the new capital will enable it to grow its managed energy assets to 10 megawatts in 12 months, expanding into Nigeria, Ghana, and Zambia markets. These assets are expected to power facilities such as hospitals, supermarkets, battery swap stations, and industrial sites, while preventing an estimated 450,000 kilogrammes of carbon emissions annually.

Speaking on the company’s progress, Rana Energy’s Co-Founder and Chief Technology Officer, Mubarak Popoola, said the company has prioritised speed and reliability in execution, adding, “Execution is everything in this market, and Rana delivers at lightning pace.

“In just 18 months, we deployed 1.3 MW of solar and storage capacity across Nigeria, achieving 99.9% uptime, reducing diesel dependence by over 80%, and slashing energy costs by up to 30% for our clients.”

Popoola added that the company’s model demonstrates the practicality of clean energy in Africa.

“From federal institutions to frontline businesses, Rana is proving that reliable clean energy is not just possible, it is inevitable,” he said. “Rana’s AI-powered ecosystem is built to scale intelligently, because energy should be a right, not a luxury.”

Co-Founder and Chief Executive Officer, Abraham Mohammed, said the company’s financing approach blends venture equity with structured green debt to create a sustainable investment model for Africa’s clean energy transition. “Rana has shown that sub-1 MW clean energy systems, when aggregated, can attract institutional capital, deliver strong returns, and drive measurable impact,” he stated.

He explained that the company’s business model generates significant economic value. “By blending venture equity with structured green debt financing, it has built a replicable model for Africa’s energy transition, where every $1 deployed generates over $10 in local economic value, driven by long-term cost savings and productivity gains, bringing Africa closer to a resilient, prosperous and low-carbon future,” Mohammed said.

He added that the continent’s distributed energy market presents a growing investment opportunity. “Africa’s distributed energy market is projected to reach $127 billion by 2030, driven by rapid urbanisation, growing demand for reliable power, and grid infrastructure limitations,” he noted. “In Nigeria alone, 80% of businesses rely on diesel generators, at $0.4/kWh, more than three times the cost of solar or grid. Rana’s no-upfront subscription model offers a scalable, climate-positive, and financially attractive solution for these businesses and communities.”

Commenting on the investment, Managing Partner at EchoVC Eco, Eghosa Omoigui, said the company’s approach reflects a transformative vision for the continent’s energy future. “Abraham and Mubarak have built the first truly scalable solution to Africa’s $20 billion energy access gap,” Omoigui said. “Their AI-powered approach doesn’t just replace diesel with a clean substitute, it creates a neoenergy paradigm that will unlock billions in economic growth.”

Rana Energy’s solutions are already being deployed in essential service sectors. The medical director of a clinic powered by the company said the switch to Rana’s system has reduced operating costs and improved reliability. “Before Rana, we were spending over ₦2.5 million monthly on diesel at our clinic. Now, we have 24/7 clean power at 25% less cost, and our patients know they can count on us during emergencies,” he said.

Rana Energy’s founders say the latest funding marks the beginning of an expansion phase that will focus on scaling clean, distributed power solutions across African markets facing energy access and affordability gaps.