adoption and combat illegal practices. a case study on the ... · digital transformation of lpg...
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Digital Transformation of LPG distribution: A case study on the use of IoT to accelerate market adoption and combat illegal practices.
3 PayGo Energy
3 BILLION PEOPLE
Lack access to modern fuels
Emerging markets have the greatest potential for LPG growth
Emerging Markets also have their challenges
1. The majority of consumers purchase fuel on a daily basis and cannot afford full cylinders.
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CHARCOAL$0.50* daily
KEROSENE$0.50* daily
LPG$24* per 13kg refill (~$0.26 daily)*September 2018 Kenyan market prices
Emerging Markets also have their challenges
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● Illegal refilling
○ In Kenya up to 60% of LPG sold is illegally refilled.
○ Oil Marketing Companies lose control of their cylinders eroding gas margins.
A new approach - The Virtual Gas Grid
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Turn every cylinder into a connected device Digitize downstream LPG operations
LPG cylinder smart meter:● Sell gas in small amounts.● Monitor cylinder fuel level
remotely.
The PAYGO PLATFORM allows wholesalers and retailers to control their cylinder fleet and provide a better service for their customers.
Why pay-as-you-goMost products are sold in small amounts to meet the needs of the mass market
Charcoal and kerosene are sold in small amounts
Soap is sold in small amounts
Credit is sold in small amounts
Electricity is sold in small amounts
~$40 to start cooking and ~$10 to refill a cylinder Gas is only available in large volumes
Register and pay for service
Top-up account using mobile money
When the meter balance is zero access to gas is shut off
Uninterrupted supply of gas with on demand delivery
Credit: 0X
How it Works
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HUB Management - Closing the loop
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Agent App
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Pilot Results
Completed 1 yr - 300 household pilot
● Average consumption 12kg per capita.● 86% of customers are 1st time LPG users.● Average sale price was 186 kes per kg/$1.85
per kg● 2% Cylinder Loss● 98% customer retention
Average top-up $3.60
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Pilot Results - Top-Up amounts increase over time
Daily Consumption amount vs Average top-up
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Raised $1.4M SERIES SEED
Raised $3.5M SERIES A
December 2019SERIES B
2017 2019 2021
VALIDATE MODEL300 Smart Meters
GO-TO-MARKET5,000+ Smart Meters
SCALE REGIONALLY100,000+ Smart Meters
SCALE GLOBALLY1 M+ Smart Meters
2018 2020
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If you are interested in learning more..
Visit our website
Website: www.paygoenergy.co
Contact: Fausto Marcigot, [email protected]
Thank You
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