Daystar Power secures $38 million Series B investment
Daystar Power, a leading provider of hybrid solar power solutions to businesses in West Africa, has announced a Series B investment of $38 million.
With the investment that was led by Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI), with STOA, a French impact infrastructure fund, Proparco, the French DFI, Sunray Ventures and Morgan Stanley Investment Management, Daystar will strengthen its operations in Nigeria and Ghana and intensify its services in Côte d’Ivoire, Senegal and Togo.
The CEO and Co-founder of Daystar Power, Jasper Graf von Hardenberg, explained that the nature of the service rendered by the company has geared African businesses to opt for their services.
“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,” said Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power.
“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.”
Explaining why the company invested in Daystar, Thomas Hougaard of Vice President Sub-Saharan Africa, IFU, noted that the company is well equipped to provide the much needed renewable energy in the continent
“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.”
Charles-Henri Malecot, CEO, STOA, expressed the company’s excitement concerning the partnership and its intention to invest more. In his word: 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.”
While Proparco and Morgan Stanley fingered climate concerns as reasons for investing, Sunray Ventures cited economic development of Africa, as Christian Wessels, Co-Founder of Daystar Power and Sunray Ventures, noted that: “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.”
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