West Africa: Daystar Power secures $38m from Danish DFI, Morgan Stanley, others
Daystar Power, a provider of hybrid solar power solutions to businesses in West Africa, today announced a series B investment of $38 million.
The round was led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution. IFU is joined by new investors STOA, a French impact infrastructure fund; Proparco, the French DFI backed by a guarantee from the European Union under the African Renewable Energy Scale-Up Facility (ARE Scale-Up); and Morgan Stanley Investment Management. Taking into account the previous round by Verod Capital and Persistent Energy, Daystar Power has received equity investments totalling $48 million.
With the fundraise, Daystar Power will grow its operations in its key markets of Nigeria and Ghana, while deepening its presence in other regional countries such as Côte d’Ivoire, Senegal and Togo. Daystar Power is on track to expand its installed capacity to over 100 megawatts, meeting demand from its clients in the financial services, manufacturing, agricultural and natural resources sectors. Daystar Power will continue to enhance its digital offerings and expand its local teams.
“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 realising 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.”
“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,” said Thomas Hougaard, vice president sub-Saharan Africa, IFU.
“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,” said Charles-Henri Malecot, CEO, STOA.
“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,” said Vikram Raju, head of climate impact, Morgan Stanley Investment Management AIP Private Markets.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.