Based in Lagos, Nigeria, Daystar Power, a startup providing solar power solutions to businesses in the region, has secured $38-million in a Series B Investment.
Daystar Power has secured $38-million in funding
The investment was led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI). Additional investors included STOA, a French impact infrastructure fund, Proparco, and several other investors.
The solar power-focused startup will reportedly use the funding to grow its operations in Nigeria and Ghana, with an aim to expand to other countries such as Senegal, Togo, and Côte d’Ivoire.
In addition, the funding will assist Daystar Power to increase its installed capacity to over 100 megawatts, catering to clients in various sectors such as financial services, agriculture, manufacturing, and more.
In an official press release, Thomas Hougaard, Vice President Sub-Saharan Africa, IFU provides insight into why an investment was made into Daystar Power.
“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, but it is also helping to accelerate the adoption of renewable energy in some of Africa’s fastest-growing cities.”
Founded in 2017 by Sunray Ventures, Daystar Power provides affordable, renewable, and stable power to businesses in West Africa.
Christian Wessels, Co-Founder of Daystar Power and Sunray Ventures explains the aims of the solar power-focused tech startup.
“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.”
The innovative service allows commercial customers to pay in cash or pay a monthly fee for its services.
Jasper Graf von Hardenberg, CEO, and Co-founder of Daystar Power points out that businesses in the Sun-Saharan region are tapping into solar power sources to maintain stability and operations.
“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.”
By providing a renewable energy resource and transforming it into electricity, Daystar Power is able to reduce pollution and positively contribute to the natural environment.
Traditional methods of accessing electricity include the burning of diesel, which emits harmful gases into the atmosphere and contributes to global warming.