Daystar Power, a Nigerian-based energy startup that provides hybrid solar power solutions to businesses in West Africa, has just announced a Series B investment of $38 million.
The funding round was led by the Investment Fund for Developing Countries (IFU), the Danish Development Finance Institution (DFI).
Other new investors that joined IFU include STOA, a French impact infrastructure fund, Proparco, the French DFI, backed by a guarantee from the European Union under the African Renewable Energy Scale-Up facility, and Morgan Stanley Investment Management.
Launched in 2017 by Sunray Ventures, Daystar Power is a leading off-grid power service provider, offering hybrid power solutions to commercial and industrial businesses in West Africa.
With its hybrid solution composed of “Solar-as-a-Service” and “Power-as-a-Service,” Daystar Power provides clean and reliable power, significantly reducing clients’ overall power costs.
Considering the previous round led by Verod Capital and Persistent Energy, Daystar Power has received equity investments of up to $48 million.
With this recent addition to its coffers, the energy company will grow its operations in its key markets of Nigeria and Ghana, while deepening its presence in other regional countries such as Côte d’Ivoire, Senegal, and Togo.
Also, it is on track to expand its installed capacity to over 100 megawatts, meeting demand from its clients in the financial services, manufacturing, agricultural, and natural resources sectors. In addition, the startup will continue to enhance its digital offerings and expand its local teams.
Remarking on the rationale behind the energy startup, Christian Wessels, the co-founder of Daystar Power and Sunray Ventures, said,
“Daystar was founded to address one of West Africa’s most significant barriers to economic development — access to reliable and affordable power.
We are happy that this transaction will provide Daystar Power with the required financing to continue to lead in off-grid solar for commercial and industrial customers in West Africa.”
Thomas Hougaard, Vice President Sub-Saharan Africa, IFU, commenting on the investment into the Nigerian-based startup also added,
“We believe that Daystar Power has the right elements — the client base, technology, engineering expertise, and executive leadership — to scale off-grid solar across West Africa.”
According to him, the venture is at the frontline position in a growing market. As such, it is boosting the adoption of renewable energy in some of Africa’s fastest-growing cities.
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