Verod Capital Management (Verod) and Persistent Energy (Persistent) have invested $10m in Daystar Power Group, a West-African electricity company specialising in the generation of solar energy.

The deal involved the issuance of a minority stake in Daystar to Verod, a West African private equity firm and Persistent, an investor in the off-grid sector.

The investment represents the 10th (and final) commitment of Verod Capital Growth Fund II, a $115m fund launched in 2014 to invest in middle-market high growth companies.

Daystar Power Group said it has lined up an additional $16m in debt financing to accelerate its expansion across West Africa. 

The deal will allow Daystar Power to expand its offering of Solar Power Solution for Commercial and Industrial customers across the region.

Daystar Power is a West African solar energy company providing African companies and institutions, including banking, consumer goods, agriculture and manufacturing clients with complete power solutions using solar energy. 

The solutions provide Daystar Power’s corporate clients with a reliable source of energy, whilst significantly reducing their operating costs and minimizing the use of diesel generators to power their operations. 

Daystar Power was founded in Lagos, Nigeria in 2017 by Christian Wessels and Jasper Graf von Hardenberg and incubated by African venture builder, Sunray Ventures.

Since inception, Daystar has installed 1MW of off-grid solar energy solutions to Commercial and Industrial customers across Nigeria and Ghana. 

Daystar Power solutions deliver up to 25% of savings against current cost of energy and guarantees 99% uptime reliability to its clients while reducing carbon emissions from diesel generators.

Charles Russell Speechlys has advised Daystar Power Group and its founder, Sunray Ventures.

Christian Wessels, Founder and Exec Chairman of Daystar Power Group, said: “We are thrilled to receive the backing of both Verod Capital and Persistent Energy. This significant investment will boost the Daystar’s expansion efforts and strategically position us as a leading provider of renewable energy solutions across Africa. The team at Charles Russell Speechlys supported in offering legal and commercial advice.”

Edidem Basiekanem, who led on the deal, commented: “We were delighted to work with the team at Daystar on this transaction, which marks a significant milestone for them as the first major private equity investment into the company. Our international focus on Africa also meant that we were ideally placed to provide legal advice. We look forward to see the company go from strength to strength”.