pay-as-you-go solar energy for emerging markets fiona mati angaza design inc. east african project...
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Pay-As-You-Go Solar Energy for Emerging Markets
Fiona MatiAngaza Design Inc.
East African Project [email protected]
MOBILE PHONES: • $0.25 per charge• ~8 charges per month
Household Energy Expenditures
= ~$100 / year
• $17 Billion African annual fuel-based lighting market + $7 Billion African annual mobile charging market
KEROSENE LIGHT: • $1 – 2 per week on kerosene fuel• ~50 weeks / year
~ $75 / year
~ $25 / year
SoLite3 – Angaza’s Pay-As-You-Go Solar Lamp
Affordable: Customers can make micro-payments spread out over time
High Quality: Made with strong materials and has a
long-lasting batteryEasy Payments: using Mobile Money
Cost Competitive compared with alternatives such as
kerosene
Audio-based data transfer
• Receives mobile money payment • Automatically initiates phone call to the
customer’s phone• Transfers payment data embedded in
audible tones to the unit• Receives and stores data from the unit to
unlock a proportional amount of energy output
Voice Call Advantages of Angaza’s Pay-As-You-Go Solar
• Low Cost ($2 to embed)• Fits customers’ cashflow
• Recurring Revenue• Bidirection communication: Usage
and diagnostic data is sent back to Angaza
Angaza’s Mobile Money Account
Customer-Specific Usage and Diagnostic
Data
Send $
Angaza Energy Hub – PAYG Management System
Revenue ($)
Integrated PAYG Technology Ecosystem
Sales and Distribution
DISTRIBUTION PARTNERS
Sell Angaza-branded products
through local entrepreneur
networks or SME retail locations
Sell Angaza-branded PAYG
products through focused projects
(e.g., schools and micro-enterprises)
License into third-party products and sell through larger,
established, branded channels
FUTURE: License PAYG into other
technologies
• Clean water kiosks
• Grid Meters
Agent Sales Project-Based Sales PAYG Licensing
B2B
Traction: Revenue-Generating
• >1,500 PAYG units sold• >$50,000 in upfront
product revenue realized
Sums Raised to Date:• Currently raising $750,000 in addition to $525,000 already raised•Awarded REEEP Grant: $180,000•Tech Awards Laureate: $75,000• Millennial Impact Challenge: $10,000
Milestones:• Expand Kenyan office
• Field local director • Add 6 new distribution partners
• Grow Sales• Lower cost of goods to increase
volume• Drive down cost of distribution partner
acquisition
• Additional Revenue Sources• License embedded payment hardware• Expand data acquisition and
monetization
Mbwana AlliyFounder & Managing Partner:
Savannah Fund
MBA: Stanford Graduate School of Business
Bryan SilverthornCTO
PhD: University of TX (Austin) in CSSignal processing and firmware
Lesley MarincolaFounder, CEO
Worked on first 3 generations of Amazon Kindle
Stanford: B.S./M.S. Mech. Engr.
Victoria ArchDirector of Strategy
PhD: Biology, UCLAExtensive international field research
Angaza Team
Niki ArmacostManaging Director & Co-founder:
Arc Finance15+ years experience in global
development
Greg BeattieAngaza Attorney: MBV Law LLP
Corporate and Technology Law, Specialization in startups
Himanshu ChoksiManaging Director: Pacifica Fund (Venture Capital & Private Equity)
10+ years entrepreneurial, managerial consulting experience
Fiona MatiE. African Project Manager
Successful history in introducing new products to East African market
Angaza Advisors
Q&A slides
Proprietary Technology Audio-based Data Transfer: Transmission of information
through discrete frequency changes in audible tones
High-frequency audible tones are played through the speaker on the
customer’s phone
The tones are received by a microphone in the unit and decoded
by an embedded microprocessor
The unit is unlocked and enabled for energy output proportional to what
the customer has pre-paid
Very low cost – adds only ~$2 to unitOptimized for small-scale energy products that comprise the market majority
Usage and diagnostic data encoded in unit is sent back to Angaza through
speaker embedded in unit
PAYG Two-Way Communication: Data Collection
Light Usage
Mobile charging Usage
Avg Light Used per day (h)
Avg Cell phone charges per week
0.0
1.0
2.0
3.0
4.0
Light (hrs)
Additional revenue stream:
- Usage data can be sold to government or private research organizations (e.g., World Bank) interested in Base-of-the-Pyramid energy consumption patterns
- Per-unit data can be used to validate carbon credit programs
Remote customer support:
- Direct link to customers’ cell phones
- Can collect and diagnose unit performance metrics such as solar panel efficiency and battery life, and communicate with customer via SMS
- Provides distributors with real-time data to support customer service
Single Customer Profile:(Stephano)
Angaza collects usage and diagnostic data from each unit
Pay-As-You-Go Competitive LandscapeCompanies Pay-As-You-Go Solution Angaza Advantage
External keypad locks/unlocks systems
Payment is mediated by physical scratch-card networks
Angaza PAYG technology is completely embedded within product for lower cost, superior tamper-proofing
Integration with mobile money streamlines payment system and provides payment flexibility
Two-way communication via cellular network allows remote data collection from each unit
Embedded GSM module in each unit regulates
lock/unlock
Angaza PAYG adds only ~$2/unit (vs. ~$17/unit for GSM module GSMA
2012) - Optimized for 1-10W systems
Shorter payback time decreases financing risk
Angaza PAYG is not tied to any specific mobile carrier, allowing easy scaling between markets
Azuri IndiGo
Simpa Networks Progressive Purchase
M-KOPA Solar
Other PAYG Applications
Village Water Kiosks
Villagers can pay per liter of water from village-level
water kiosks with Angaza’s Pay-As-You-Go. Flow meter regulates output and shuts
off flow when pre-paid quantity is reached.
Clean Cookstoveswith electrical component
New cookstoves which generate electricity from heat (e.g. BioLite) can be regulated with Angaza’s
Pay-As-You-Go
Grid Meters
Current meters in E. Africa use a keypad-based payment
system and cannot send data back. Angaza’s Pay-As-You-Go
can be cheaply embedded within the meter to provide two-way communication.
Angaza’s Pay-As-You-Go technology can be embedded in a wide variety of products to provide pay-per-use functionality, and we are actively pursuing partners to facilitate this.
Intellectual Property Strategy
Dec 2011
Full U.S. Patent Application and
International PCT Application Filed
U.S. Provisional Patent Filed
Convert PCT to country-
specific patents
Dec 2012 May 2014
What does it cover?
• Audio-based data transfer applied to Pay-As-You-Go model
• Ecosystem involved with Pay-As-You-Go functionality including embedded hardware, embedded firmware, and cloud-based data management system with details on how these parts interact
• Two-way cellular communication with opportunities for data collection
• Is not just restricted to solar products, but rather highlights transferability of technology to many different types of products (water kiosks, grid meters, etc)
Unit Economics
Licensing Assumptions:
- Angaza takes a 15% transaction fee on all energy payments channeled through our
platform -Chart based on expected payment
schedule for 5-watt product with $30 upfront fee and $150 payoff price- Angaza COGS includes airtime and
mobile money fees
Angaza Economic Outcomes:
~$17 in profit per unit sold~75% profit margin=
• Proprietary PAYG Technology• Full U.S. Patent and PCT Applications Filed• SoLite-2 with PAYG sold in Tanzania with
100% payback to date• High-Volume production initiated – 2000
units• Widely applicable for many different types
of products (e.g., clean water kiosks)• Data collection opens avenues for targeted
marketing and unprecedented customer support and retention
• Revenue-Generating Stage• Established manufacturing, Quality-tested
products, PAYG sales in countries to date
• Effective Partnerships• Vodacom Tanzania (MPESA TZ)• MIT/Sloan, Institute for Poverty Action (IPA) • Distributor relationships incl.ToughStuff
International, Barefoot Power, Zamsolar, SunnyMoney etc.
• Strong Team• Stanford/UT Austin/UCLA educated (2 PhDs,
1 Masters in Engineering)• Extensive experience in our target markets
Why Angaza?