- Daystar Power has raised $38 million in its Series B funding
- The capital injection will enable the company to expand into other West African markets.
- Daystar plans to increase its total installed capacity by over 300 per cent.
Daystar Power, a commercial and industrial solar energy provider, has raised US$38-million in its Series B financing round. This funds will finance the company’s expansion plans across west Africa.
Daystar Power offers ‘Solar-as-a-Service’ and ‘Power-as-a-Service’ solutions to commercial businesses in the financial services, manufacturing, agricultural and natural resources sectors in West Africa. The company intends to increase its installed capacity from 23MW to 100MW. The capital will enable Daystar Power to scale-up and accelerate growth in Nigeria and Ghana, and enter other west African markets like Côte d’Ivoire, Senegal and Togo.
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This funding was led by the Danish Impact investor Investment Fund for Developing Countries (IFU) alongside the French impact infrastructure fund STOA, development finance institution Proparco and Morgan Stanley Investment Management. This round of financing brings the total raised by Daystar Power to US$48 million till date. According to STOA, the company seeks to invest over 50% of its capital in renewable energy development across Africa.
According to Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power, the provision of cheaper and reliable power to the company’s commercial and industrial clients has led to an over 50-fold increase power-as-a-service revenue over the last two years.
Private developers dominate solar hybrid deployment in West Africa with funding from development finance institutions. Nigeria is undoubtedly the region’s largest mini-grid market with international donors providing over $374 million for mini-grid development over the past decade.