Daystar Power, an African solar energy company, has closed a $10 million USD investment with Verod Capital Management in partnership with Persistent Energy Capital LLC. In addition to the fund, the company has lined up an additional $16 million in debt financing for solar power expansion across West Africa.
Founded in 2017, Daystar Power is a leading West African solar energy company that provides power solutions integrating solar power and battery storage for commercial and industrial clients across Nigeria, Ghana and Tanzania. These solutions significantly reduces the operational costs of large companies by minimizing the use of diesel generators to power operations. It was founded by Christian Wessels and Jasper Graf von Hardenberg and incubated by African venture builder, Sunray Ventures.
Daystar operates two models: PaaS and SaaS. In the Power as a Service (PaaS) model, Daystar provides all power used at a client’s site against a fixed service fee. With the Solar as a Service (SaaS), the company provides solar generated power to clients at a per kWh price with a guaranteed offtake.
See also: PEG Africa Raises $25m to Accelerate Off-grid Solar Expansion in West Africa
The power solutions range from 20 kWp to 5 MWp, which delivers up to 25% savings and guarantees 99% uptime compared to diesel generators that pollutes the environment with carbon emissions.
It provides clients with a monthly payment option that reduces capital cost and makes it easier for customers to switch to a cleaner energy solution. It also focuses on a high quality service, using only best-in class equipment with long-term warranties and a strong local technical support service team.
In response to the recent funding, Daystar Chairman Christian Wessels said, “Within a short time, Daystar Power has forged strong energy partnerships with some of West Africa’s leading companies. With Verod Capital Management, one of West Africa’s leading private equity investors, and Persistent, a leading investor and venture builder in the off-grid sector, we have attracted two major investors who share our excitement for solar power for commercial and industrial customers in Africa.”
The latest round of funding is the company’s second. Its first external funding came from the German Development Bank (DEG). The company has plans to expand to Kenya and Zambia.
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