Rana Energy plans 10MW expansion after $3m pre-seed funding round
Rana Energy, an AI-powered Clean Energy-as-a-Service company, has raised $3 million in pre-seed funding to expand its digital utility network across Africa. The company aims to increase access to affordable and reliable clean energy for households and businesses on a continent where over 600 million people still lack a dependable electricity supply.
The funding round includes $500,000 in equity from Techstars, EchoVC Eco, and angel investors such as Chinedu Azodoh and Tayo Bamiduro, co-founders of mobility company MAX. The remaining $2.5 million was raised through a local currency green debt note arranged by Optimum Global and backed by FSDH Asset Management.
Founded in 2023 by engineers Abraham Mohammed and Mubarak Popoola, Rana Energy is developing what it calls Africa’s first AI-driven digital utility. Its core platform, known as the Virtual Solar Network (VSN), uses artificial intelligence to forecast energy demand, aggregate solar and battery storage projects, and manage distributed energy assets remotely.
Through this model, businesses and communities can subscribe to clean energy services without upfront payments. Rana installs and operates solar and storage systems while customers pay predictable monthly fees. This structure has allowed clients to cut energy costs and reduce reliance on diesel generators.
Dr. Boroji Osindero, Medical Director at Wellness Centre in Lagos, said the service had made a significant difference. “Before Rana, we were spending over ₦2.5 million monthly on diesel at our physiotherapy clinic. Now, we have 24/7 clean power at 25% less cost, and our patients know they can count on us during emergencies.”
According to co-founder and CTO, Mubarak Popoola, Rana Energy has deployed 1.3 megawatts (MW) of solar and storage systems across Nigeria in just 18 months. “Execution is everything in this market, and Rana delivers at lightning pace,” he said. “We’ve achieved 99.9% uptime, reduced diesel use by over 80%, and cut energy costs by up to 30% for our clients.”
With the new funding, Rana plans to expand its VSN asset base to 10 MW within 12 months, extending services to battery swap stations, hospitals, supermarkets, and industrial facilities across Nigeria, Ghana, and Zambia. The company estimates this will avoid more than 450,000 kilogrammes of carbon emissions each year.
Co-founder and CEO, Abraham Mohammed, said the model combines venture equity with structured green debt to create a sustainable investment pathway for Africa’s energy transition. “By blending venture equity with structured green debt financing, we have built a replicable model for Africa’s energy transition, where every $1 deployed generates over $10 in local economic value,” he said.
EchoVC Eco’s Managing Partner, Eghosa Omoigui, said Rana’s approach demonstrates a scalable solution to Africa’s energy access gap. “Abraham and Mubarak have built the first truly scalable solution to Africa’s $20 billion energy access gap,” he 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 software team, led by Head of Software and AI Innovation, Godpraise Momoh, said the VSN ecosystem supports project mapping, financing, and monitoring. The system integrates mobile payments and offers real-time performance tracking, with blockchain-based carbon verification in development.
Africa’s distributed energy market is expected to reach $127 billion by 2030. Rana Energy says it intends to help drive that growth by providing clean, cost-effective power where it is needed most.
