Eden Lotus Power Limited (Eden Power), a leading provider of portable power solutions, has today announced the acquisition of Popular Energy Limited (Popular Energy), a rising competitor in the portable power station market.
The transaction, valued at N100m (One Hundred Million Naria), combines cash and equity to consolidate Eden Power’s dominant position in the industry.
Founded during the challenging times of 2020 by Michael Ajetunmobi, Popular Energy has made significant inroads in the market by selling thousands of its portable powerpack units.
The company was quick to respond to the surge in demand for reliable power sources at a time when the world was grappling with the effects of the Corona virus (Covid-19) pandemic.
Both Eden Power and Popular Energy have established themselves as market innovators by prioritizing mobility and efficiency in their power solutions. This synergy makes the acquisition a promising development for all stakeholders.
In light of the acquisition, Michael Ajetunmobi shared,
- “I am proud of what we have built at Popular Energy in such a short time and am thrilled to see it enter a new era with Eden Power.
- This acquisition is a testament to our team’s hard work and commitment to excellence. I am confident that under Eden Power’s leadership, the legacy of Popular Energy will continue to flourish.”
Muyiwa Boris Abiodun, CEO of Eden Power, commented on the acquisition saying,
- “We are excited to welcome Popular Energy into the Eden Power family.
- This acquisition not only diversifies our product range but also consolidates our market share in the portable power sector.
- We look forward to integrating Popular Energy’s expertise and leveraging their innovative products to enhance our service offerings and continue delivering exceptional value to our customers.”
Eden Power is committed to a smooth transition and ensures that all Popular Energy customers will continue to receive the high-quality products and service they have come to expect.
This acquisition is expected to be immediately accretive to earnings and will provide long-term value for Eden Power’s shareholders.
About Eden Lotus Power Limited
Eden Lotus Power Limited is a provider of power solutions, serving the needs of customers who demand reliability and convenience.
Committed to innovation and quality, Eden Power has carved a niche for itself as a company dedicated to powering customers’ lives in the most efficient ways possible.
For more information about Eden Power Limited, please visit www.edenpower.ng
The information contained in this press release is for informational purposes only.
The acquisition story of Popular Energy
In 2020, in the middle of the pandemic, it was clear that with all the techies working from home, there was going to be a strong need for regular power.
Thousands of techies, having to put their generator on all day, it was obvious that they would rush for a cheaper solution.
Michael Ajetunmobi, as one of the techies also affected by this, came up with an idea – what if he imported and sold laptop power banks?
He did a bit of research online and found a bunch of manufacturers in China that sold such devices. He contacted a manufacturer, and after several weeks of negotiation, they agreed to manufacture power stations for him.
He picked a name that represented the company – popular.energy. Power for everyone.
He approached Mark Essien, founder of Hotels.ng, who provided him with the startup capital. He contacted the factory in China with an initial order for 100 pieces.
Unfortunately, the first snag hit – it turns out you cannot transport batteries by air, you have to transport by sea.
Michael spent the next weeks figuring out how logistics works, and then took a big risk – sent the money to a merchant he had never worked with in China.
There were various challenges at all stages, from in-China shipping, moving it from the port, and clearing it in Nigeria. But roughly 3 months later, the devices had arrived, and were sitting in his one-bedroom house, completely filling the house.
His first client was Hotels.ng, who needed the devices for the staff who were all working from home during this covid period.
Immediately after the initial sale of 20 pieces, Michael announced his stock in the HNG Network, a group of techies who had successfully completed the HNG Internship program. Within a week, all 80 remaining pieces had been sold.
More orders were coming in, but there was simply no stock. Michael contacted the factory for the next order, sinking all the profits back into the business – 250 pieces.
The long process started again, but this time with a bit more experience, it went quicker.
But then Covid restrictions hit the port. The ship got delayed at the port for weeks. Orders were coming in, but there was simply no stock.
Finally, the goods cleared. Sales started, and the first 100 sold quickly. But then the naira started to depreciate.
The money kept aside for re-orders was quickly losing value, and had to be rapidly converted to dollars. But sales were gaining traction strongly, particularly with partnerships with CDCare, jumia and other merchants.
Profits were enough to justify the ordering of more batches. They sold at a good pace also, But by this time, new entrants had entered the market, including Eden Power.
Eden Power had a new device that was similar to the Popular Energy device, same reliability and efficiency, with a slightly lower cost.
However, Eden Power was very well capitalised, so they could maintain a steady stream of devices coming to the country, while Popular Energy would always pause orders while the next batch was on the ship coming in.
They were also very aggressive with marketing, quickly expanding market reach with multiple sizes and specifications.
Eden Power devices had also been specially designed for the Nigerian consumer with USB-C ports and an in-built LED bulb.
After a couple of more batches, Michael had a discussion with the investors, and the decision was made to discontinue the importation.
The depreciation of the naira meant that it was difficult to manage the finances in a way that allowed reliable re-acquisition of stock.
But Michael had an idea, instead of just shutting down and pocketing the profits, why not get in touch with Eden Power and propose a partnership? He got in contact, and Eden Power offered a great deal – Popular Energy sells from Eden Power’s stock of power devices, and earns a commission.
This was started, and it took off rapidly. The access Popular Energy had to the techie community, and existing word-of-mouth meant that there were constant new customers coming in.
Once they knew that stock would not run out, and that the new device was as reliable as the old device, sales became strong. Popular Energy did not need working capital anymore, it was now an asset light business.
After a while, the CEO of Eden Power approached Michael with an offer – we are doing the same thing basically, what if we merged together and became one company?
This happened at about the time that Michael was learning DevOps seriously, and was happy to move his DevOps career forward.
After a short discussion with the investors, it was an enthusiastic yes. The sale was completed in December, 2023.
With this move, Eden Power expands its reach significantly, Michael and his investors make a great return on their investment, and the customers now deal with a big, reliable company that can support them in the long term.
A happy ending for everyone.
