Daystar Power, a Nigerian-based hybrid solar power solutions provider, has secured $20m funding from the International Finance Corporation (IFC).
The funding, according to the company, would be used to carry out more renewable energy projects in Nigeria. Currently, the company operates 150 solar power systems, and aims to expand its current power capacity from 29 megawatts (MW) to 140MW by 2024.
Speaking on the fundraise, Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power 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. But we gain more than just capital. IFC brings a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets. We’re delighted to work with them.”
Daystar Power, which was founded in 2017 by Surrah Ventures, is an off-grid power service provider whose solutions, “Solar-as-a-Service” and “Power-as-a-Service” provide clean and reliable power while reducing overall power costs for clients.
With the $20m funding received, the funds raised by Daystar this year, amounts to $62m.
In January, Daystar Power raised $38 million in its Series-B fundraise to expand across West Africa. It also raised $4m for its Ghanaian subsidiary with DEG.
Daystar started its operations in Nigeria. Currently, the company is actively present in Ghana, Senegal, and Togo, with a representative office in Ivory Coast.
According to Nairametrics, the fundraise is in two parts: one part is a $10m subordinated loan from the Canada-IFC Renewable Energy Program for Africa.
The second part, however, involves $10m (₦4.1 billion) disbursed to Daybreak Power Solutions, the Nigerian subsidiary of the company, by IFC.
Daystar is also working with the Canadian-funded IFC program Energy2Equal to close gender gaps and increase women’s participation in the renewable energy sector.