Lagos based Daystar Power Energy Solutions, has raised $38m from two companies to expand its business to other West African markets.
The companies are Investment Fund for Developing Countries and Morgan Stanley Investment Management.
“We have seen a more than fiftyfold increase in power-as-a-service revenue over the last two years,” Daystar Chief Executive and co-founder Jasper Graf von Hardenberg disclosed in a statement.
The company provides solar power and hybrid power solutions for Africa’s most populous nation and companies in Ghana.
The funds which were given by investors have pushed the company’s equity investments to $48m.
Nigeria’s grid capacity is about 4,500 megawatts with only 55 per cent of its over 200 million people connected to electricity.
With the power shortfall, Nigeria stands as an attractive market for mini-grid.
Daystar said it would expand its installed power capacity to 100 megawatts from the current 23 megawatts, with an eye expansion in its key market like Nigeria and Ghana.
The company seeks to enter Côte d’Ivoire, Senegal and Togo as its key targets outside Nigeria and neighbouring Ghana.