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Persistent Energy Capital LLC, an impact investment firm based in Lagos, New York and Zurich, and Lagos-based private equity firm, Verod Capital Management, have invested $10 million in Daystar Power, a renewable energy solutions company. According to a statement released on Thursday, the deal will allow Daystar Power to expand its solar power solutions for commercial and industrial customers across the West Africa region.

Founded in Lagos in 2017 by Christian Wessels and Jasper Graf von Hardenberg and incubated by African venture builder, Sunray Ventures, Daystar Power provides complete power solutions to African companies in various sectors, including banks, consumer goods, agriculture and manufacturing. In additional to the latest investment in the company, Daystar Power said it has also lined up $16 million in debt financing to accelerate its expansion across the region.

Daystar Power said it provides solar power systems ranging from 20 KWp and up to 5 MWp. The solar energy company also offers monthly payment option that helps to reduce operating costs, thereby making it easier to switch to a cleaner energy solution. By helping clients to minimize the use of diesel generators to power their operations, Daystar Power’s solutions deliver up to 25 percent in cost savings compared to other sources of energy.

“The additional capital raised by Daystar Power will accelerate our growth and help us satisfy the significant demand we see among West African corporates for solar power solutions that reduce both cost and carbon footprint,” said Jasper Graf von Hardenberg, Chief Executive Officer of Daystar Power. “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 which share our excitement for solar power for commercial and industrial customers in Africa."

Daniel Adeoye, Senior Investment Manager at Verod Capital Management, said the deal reflects the private equity firm’s belief that the future of Africa’s energy supply is and must be renewable.

“The private sector can lead our transition to a low carbon economy. Daystar is pioneering the supply of low-cost hybrid solar power, and we look forward to helping to fulfill the company’s potential and driving swift growth and expansion," Adeoye added.
 
On her part, Olu Verheijen, Partner at Persistent Energy, said the path to scale and profitability in the off-grid sector is in the commercial and industrial segment, which Daystar Power provides services to. “Daystar’s solutions enable companies to redirect significant power cost savings into business growth while reducing their carbon footprint. We are very excited to partner with Daystar Power to unleash sustainable economic growth in Nigeria.”