Investor Updates: Shell Acquires African Solar Provider Daystar Power

Oil giant Shell acquires African solar provider Daystar Power

Highlights

• Oil giant Royal Dutch Shell will purchase African solar provider Daystar Power for an undisclosed sum, as it expands its global renewables portfolio. 
• Daystar, headquartered in Lagos, provides off-grid power to commercial and industrial clients in Nigeria, Ghana, Togo, and Senegal, offering solar and hybrid power solutions with battery storage.
• Shell is one of the most influential oil producers in Africa, but the purchase of Nigeria-based Daystar is its first power acquisition on the continent. Pending regulatory approvals, Shell will fully own Daystar, but the management team will continue to run the company.

Source: Bloomberg

Our Takeaway

The decreasing costs of solar systems, relative to either grid or diesel generators, have helped on-site solar microgrids—provided by companies like Daystar—become economically viable alternatives for commercial and industrial use in Africa. Daystar has 300 power installations with an installed solar capacity of 32 megawatts but aims to boost capacity to 400 MW by 2025 and also expand to eastern and southern Africa, a goal that would be easier to reach with Shell. For investors who have provided its $92 million funding so far, per Crunchbase, this acquisition means they exit the solar provider, most likely at a premium.

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Egypt’s Partment raises $1.5 million pre-seed round

Highlights

• Egypt-based proptech Partment, has closed its pre-seed round at $1.5 million, led by Nclude, Plus Venture Capital (+VC), along with a group of angel investors.
• Founded in 2022 by Ahmed El Raggal and Nadim Nagui, Partment offers a booking system that enables users to co-own second homes, while providing an end-to-end property management service, optimizing property utilization.
• The new round will help Partment enhance the infrastructure of its platform, and deploy its MVP starting in Egypt.

Source: Wamda

Our Takeaway

Unlike many other traditional industries, real estate and properties have not changed very much. But the ongoing technology wave has seen African startups emerge to give the sector a face-lift. Partment is one such, with unique play. Through its platform, users can explore listings of curated and end-to-end managed homes in their favorite destination(s), co-own the property, and get 40+ nights per year to use it. Eventually, they can exit the investment by selling their portion independently while enjoying the potential capital gains. Its significant pre-seed funding alludes to the fact that investors see an opportunity to be unlocked in the properties market.

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Knife Capital reaches 2nd close of $50m African fund

Highlights

• Standard Bank and the SA SME Fund have backed VC firm Knife Capital’s new $50 million African Series B expansion fund—Knife Fund III—which has reached its second close.
• South Africa’s Knife Capital is a VC and growth equity investment manager focusing on innovation-driven ventures with proven traction. Knife Fund III aims to support the expansion of African startups and fill a critical follow-on funding gap. 
• The second close of the fund brings provisional commitments to just over $40 million with Knife Capital close to reaching the $50 million target raise. 

Source: Disrupt Africa

Our Takeaway

Smaller- to medium-sized funds with $10 million to $50 million of capital to deploy are targeting opportunities in Africa and other frontier markets. Uncovered Fund, LoftyInc Capital, Savannah Fund, and Ventures Platform are some firms that have launched similar funds in the past year. This translates into more available funds for early-stage innovative businesses. Other notable funders that have committed to Kinfe include the IFC, Mineworkers Investment Company, the SA SME Fund, international development funders, and prominent family offices.