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Nigerian Solar Power Startup Secures $38 Million Funding

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Nigerian-based solar energy solution startup, Daystar Power, announced it secured $38 million in a Series B investment.

Leading the investment is the Investment Fund for Developing Countries (IFU), and the Danish development finance institution (DFI).

Joining them is Proparco, the French DFI; STOA,  a French impact infrastructure fund; backed by a guaranty from European Union under the African Renewable Energy Scale-Up facility, (ARE Scale-up) and several other investors.

However, this came after receiving a $48 million round fund by Verod Capital and Persistent Energy.

What is the fund for?

Reportedly, the solar company will use the funding to accelerate its regional expansion.

It plans to grow its operation in Ghana and Nigeria, its key market; and hopes to deepen its presence in other African countries like Côte d’Ivoire, Togo, Senegal, and many others.

The funding is to help increase its installed capacity of over 100 megawatts; catering to clients in various sectors.

Such sectors include financial services, agriculture, manufacturing, and natural resources.

Besides, Daystar Power plans to continue enhancing its digital offering and expands its local team.

About Daystar Power

Daystar Power was founded in 2017 under Sunray Ventures.

The company gives two solutions: the “Solar-as-a-service” solution and the “Power-as-a-service” solution.

It is among the leading solar providers in Africa; providing affordable, renewable, and stable power solutions to commercial and industrial businesses.

Co-founder, Christian Wessel of Daystar Power, explained the aim of the company.

He said that the company was founded to address one of West Africa’s most significant barriers to economic development.

He said: “Sunray Ventures founded Daystar Power 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,”

Further, he expressed joy on behalf of the company.

“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.”

Co-founder, Jasper Graf von Hardenberg, added:

“By offering our commercial and industrial clients cheaper, reliable and cleaner power; we have seen a more than 50-fold increase in power-as-a-service revenue over the last two years, 

“African businesses are realizing that solar power — stand-alone or in tandem with a second power source — is a superior energy alternative to the often-unreliable grid or too expensive, polluting diesel generators.”

However, clients of the company pay a flat monthly fee for premium power services; which include power audit, assessment of energy needs, a bespoke proposal and many more.

Contributors’ comment on the funding

Thomas Hougaard, Vice President Sub-Sahara Africa, IFU said with Daystar Power, the fund will be useful to accelerate the use of renewable energy in Africa.

“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.

“Not only is Daystar Power at the forefront of a growing market, it is helping to accelerate the adoption of renewable energy in some of Africa’s fastest-growing cities.”

CEO, STOA, Charles-Henri Malecot said the investment reflects its company’s mission.

“STOA is excited to start this journey alongside Daystar, which is perfectly positioned to provide reliable, environmentally friendly and cheap electricity to businesses across West Africa.

“This investment reflects a core part of our mission; we aim to invest more than 50% of our capital in Africa and in renewable energies.”

Daystar Power to help deploy clean energy

Damien Braud, Head of Private Equity Africa & Middle East division, Proparco, said its commitment and objectives are the reason for its investment.

“Proparco is delighted to support the growth of Daystar Power (DSP); which represents our third commitment under the ARESUF facility backed by the European Union.

“In line with Proparco’s objectives of improving energy access and reducing greenhouse gas emissions, this funding will enable DSP to expand reliable power supply at competitive cost to West Africa’s C&I sector.”

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According to Vikram Raju, Head of Climate Impact, Morgan Stanley Investment Management AIP Private Markets, its investment was to generate clean energy.

“Morgan Stanley Investment Management’s Climate Impact Solutions fund seeks to generate compelling returns with a focus on helping to solve critical climate issues.

“Our aim in partnering with the team at Daystar Power is to help deploy clean energy at commercial scale – creating a positive, long-lasting environmental, health and financial impact in West Africa,”

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