Daystar Power, a provider of hybrid solar power solutions to businesses in West Africa, has closed a facility of $20 million from the International Finance Corporation (IFC)
The Nigerian-based startup was founded in 2017 by Sunrah Ventures, as a go-to platform for off-grid power services.
With its unique hybrid model, Daystar Power offers both “Solar-as-a-Service” and “Power-as-a-Service”, providing clean, affordable, and reliable power for its clients.
Having raised a $38 million Series-B fundraise and a $4 million financing for its Ghanaian subsidiary, Daystar’s total amount of funding adds up to $62 million this year.
The new investment will help to finance the company’s project pipeline in Nigeria where it is currently managing and operating 150 power installations.
Speaking on the milestone the funding represents, CEO and Co-founder of Daystar Power, Jasper Graf von Hardenberg, said, “This facility is a major milestone for us.
The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power.”
According to him, working with IFC will be a delight as the corporation not only brings capital but a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets.
The IFC investment is structured into two equal parts. First is a $10 million local currency loan from IFC, which will be deployed into its Nigerian subsidiary, Daybreak Power Solutions.
The other $10 million subordinated loan will be provided by the Canada-IFC Renewable Energy Program for Africa.
Daystar Power has a partnership going with the Canadian-funded IFC program, Energy2Equal, to bridge gender gaps and increase the participation of women in the renewable energy industry.
For the company, the IFC investment is a historic achievement as it will accelerate its plans to expand its installed solar power capacity from 29 megawatts (MW) to 140MW by 2024 and increase its customer base across the financial manufacturing and agricultural sectors.
Currently, the company is operational in Ghana, Senegal, and Togo, with a branch office in Ivory Coast.
