A Lagos-based energy and climate-tech startup, PowerLabs, has raised a pre-seed funding round aimed at addressing Nigeria’s unreliable and fragmented power systems.
The investment round was led by Breega, with support from Catalyst Fund, Mercy Corps Ventures, and Kaleo Ventures. According to the company’s CEO and co-founder, Tobechukwu Arinze, the funds will be used to scale its AI-powered platform, Pai Enterprise, across Nigeria’s commercial and industrial sectors, while also supporting expansion into other West African markets.
The funding comes at a time when businesses across Nigeria continue to struggle with unstable electricity supply. Many companies now rely on a mix of diesel generators, solar panels, inverters, and battery storage systems to stay operational—an approach that is both expensive and difficult to manage.
In 2024 alone, Nigeria’s manufacturing sector reportedly spent over ₦1.11 trillion on alternative energy sources, marking a sharp increase and highlighting the growing cost of self-generated power.
Arinze explained that PowerLabs is focused on building an intelligent system that brings order to this complexity.
“Distributed energy systems are often seen as chaotic, with different components that don’t communicate effectively. Our goal is to unify these systems into one smart, efficient network that offers flexibility, cost savings, and sustainability,” he said.
Unlike traditional energy tools that only track consumption, Pai Enterprise is designed to actively manage multiple energy sources in real time. The platform can analyse supply and demand, adjust usage, and optimise performance across systems—effectively turning energy management into a strategic advantage rather than a reactive necessity.
The solution is particularly valuable in sectors where power disruptions can have serious consequences. Hospitals, for instance, can ensure uninterrupted electricity for critical care units, while data centres and manufacturers can improve efficiency and reduce operational costs.
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PowerLabs plans to use the new funding to accelerate deployment of its technology, improve its predictive capabilities, and strengthen integration across various energy sources, including solar, battery storage, and grid supply.
Investors say the startup is tackling a critical problem. Tosin Faniro-Dada, a partner at Breega, noted that intelligent coordination of multiple energy sources will be key to solving Africa’s power reliability issues.
Similarly, Catalyst Fund’s Chief Investment Officer, Oluwotoyin Emmanuel-Olubake, emphasised that businesses today need smarter systems to balance cost, reliability, and environmental impact in increasingly complex energy environments.
With its latest funding, PowerLabs is positioning itself at the forefront of that transition—helping businesses move from simply coping with power shortages to actively managing energy in a smarter, more sustainable way.
