Presentation on theme: "Pay-As-You-Go Solar Energy for Emerging Markets"— Presentation transcript:
1Pay-As-You-Go Solar Energy for Emerging Markets Fiona MatiAngaza Design Inc.East African Project Manager
2Household Energy Expenditures KEROSENE LIGHT:$1 – 2 per week on kerosene fuel~50 weeks / year~ $75 / yearMOBILE PHONES:$0.25 per charge~8 charges per month~ $25 / yearPossibly consolidate with previous slide to show “micro” view of per- off grid household expenditures on energy per year.= ~$100 / year$17 Billion African annual fuel-based lighting market + $7 Billion African annual mobile charging market
3SoLite3 – Angaza’s Pay-As-You-Go Solar Lamp High Quality: Made with strong materials and has a long-lasting batteryAffordable: Customers can make micro-payments spread out over timeEasy Payments: using Mobile MoneyInsert slide with brief summary of the SoLite3, as the first product with which we’re demonstrating our PAYG technologyCost Competitive compared with alternatives such as kerosene
4Advantages of Angaza’s Pay-As-You-Go Solar Integrated PAYG Technology EcosystemRevenue ($)Angaza’s Mobile Money AccountAngaza Energy Hub –PAYG Management SystemCustomer-Specific Usage and Diagnostic DataReceives mobile money paymentAutomatically initiates phone call to the customer’s phoneTransfers payment data embedded in audible tones to the unitReceives and stores data from the unit to unlock a proportional amount of energy outputSend $Voice CallAdvantages of Angaza’s Pay-As-You-Go SolarLow Cost ($2 to embed)Fits customers’ cashflowRecurring RevenueBidirection communication: Usage and diagnostic data is sent back to AngazaSub out “tones” for anywhere it says “FSK”Add “energy hub” on “angaza proprietary…”Simplify text, take out right hand box, add in “advantages” in large bullets from Slide 6; remove Slide 6Add two-way communication as one of the advantagesPossibly add animation to emphasize two-way communication and collection of unit-specific dataEmphasize very low cost – our major competitive advantage and allows us to embed it in low-cost lamps that are affordable for the majority of the African kerosene-dependent populationAnimation of Advantages – appear, make test bigger, different font color/background? This is major take-away of the slideAudio-based data transfer
5DISTRIBUTION PARTNERS FUTURE: License PAYG into other technologies Sales and DistributionB2BDISTRIBUTION PARTNERSAgent SalesProject-Based SalesPAYG LicensingFUTURE: License PAYG into other technologiesClean water kiosksGrid MetersSell Angaza-branded products through local entrepreneur networks or SME retail locationsSell Angaza-branded PAYG products through focused projects (e.g., schools and micro-enterprises)License into third-party products and sell through larger, established, branded channelsUpdate Barefoot to represent current MoU in place and upcoming pilotCookstove example is the Biolite – has an electrical component that can be controlled by our technologyAdd one degree solar to licensing – check with lesley
6Milestones: >1,500 PAYG units sold Traction: Revenue-Generating>1,500 PAYG units sold>$50,000 in upfront product revenue realizedSums Raised to Date:Currently raising $750,000 in addition to $525,000 already raisedAwarded REEEP Grant: $180,000Tech Awards Laureate: $75,000Millennial Impact Challenge: $10,000Milestones:Expand Kenyan officeField local directorAdd 6 new distribution partnersGrow SalesLower cost of goods to increase volumeDrive down cost of distribution partner acquisitionAdditional Revenue SourcesLicense embedded payment hardwareExpand data acquisition and monetizationGet details on current raise
7E. African Project Manager Angaza TeamAngaza AdvisorsLesley MarincolaFounder, CEOWorked on first 3 generations of Amazon KindleStanford: B.S./M.S. Mech. Engr.Mbwana AlliyFounder & Managing Partner: Savannah FundMBA: Stanford Graduate School of BusinessBryan SilverthornCTOPhD: University of TX (Austin) in CSSignal processing and firmwareNiki ArmacostManaging Director & Co-founder: Arc Finance15+ years experience in global developmentVictoria ArchDirector of StrategyPhD: Biology, UCLAExtensive international field researchHimanshu ChoksiManaging Director: Pacifica Fund (Venture Capital & Private Equity)10+ years entrepreneurial, managerial consulting experienceFiona MatiE. African Project ManagerSuccessful history in introducing new products to East African marketGreg BeattieAngaza Attorney: MBV Law LLPCorporate and Technology Law, Specialization in startups
8East Africa Project Manager New logo, sub in Fiona detailsFix lamp …Fiona MatiEast Africa Project Manager
10Very low cost – adds only ~$2 to unit Proprietary TechnologyAudio-based Data Transfer: Transmission of information through discrete frequency changes in audible tonesHigh-frequency audible tones are played through the speaker on the customer’s phoneThe tones are received by a microphone in the unit and decoded by an embedded microprocessorThe unit is unlocked and enabled for energy output proportional to what the customer has pre-paidPossibly put in back up slides for Q/A?Usage and diagnostic data encoded in unit is sent back to Angaza through speaker embedded in unitVery low cost – adds only ~$2 to unitOptimized for small-scale energy products that comprise the market majority
11PAYG Two-Way Communication: Data Collection 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 programsRemote 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 serviceSingle Customer Profile:(Stephano)Light (hrs)Review this information as talking points. Maybe remove this slide, and move to back for Q/AAngaza collects usage and diagnostic data from each unit
12Pay-As-You-Go Solution Simpa Networks Progressive Purchase Pay-As-You-Go Competitive LandscapeCompaniesPay-As-You-Go SolutionAngaza AdvantageExternal keypad locks/unlocks systemsPayment is mediated byphysical scratch-card networksAngaza PAYG technology is completely embedded within product for lower cost, superior tamper-proofingIntegration with mobile money streamlines payment system and provides payment flexibilityTwo-way communication via cellular network allows remote data collection from each unitEmbedded GSM module in each unit regulates lock/unlockAngaza PAYG adds only ~$2/unit (vs. ~$17/unit for GSM module GSMA 2012) - Optimized for 1-10W systemsShorter payback time decreases financing riskAngaza PAYG is not tied to any specific mobile carrier, allowing easy scaling between marketsAzuri IndiGoSimpa Networks Progressive PurchaseIf not enough space, move to the back for Q/AM-KOPA Solar
13with electrical component Other PAYG ApplicationsAngaza’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.Maybe move up by #13 to visually show other applications of technologyVillage Water KiosksVillagers 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 componentNew cookstoves which generate electricity from heat (e.g. BioLite) can be regulated with Angaza’s Pay-As-You-GoGrid MetersCurrent 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.
14Intellectual Property Strategy Full U.S. Patent Application and International PCT Application FiledConvert PCT to country-specific patentsU.S. Provisional Patent FiledDec 2011Dec 2012May 2014What does it cover?Audio-based data transfer applied to Pay-As-You-Go modelEcosystem involved with Pay-As-You-Go functionality including embedded hardware, embedded firmware, and cloud-based data management system with details on how these parts interactTwo-way cellular communication with opportunities for data collectionIs not just restricted to solar products, but rather highlights transferability of technology to many different types of products (water kiosks, grid meters, etc)Remove?
15= Unit Economics Licensing Assumptions: Angaza Economic Outcomes: Angaza takes a 15% transaction fee on all energy payments channeled through our platformChart based on expected payment schedule for 5-watt product with $30 upfront fee and $150 payoff priceAngaza COGS includes airtime and mobile money feesAngaza Economic Outcomes:~$17 in profit per unit sold~75% profit margin=Move to back for Q/AReview for full understanding
16Why Angaza? Proprietary PAYG Technology Revenue-Generating Stage Full U.S. Patent and PCT Applications FiledSoLite-2 with PAYG sold in Tanzania with 100% payback to dateHigh-Volume production initiated – 2000 unitsWidely applicable for many different types of products (e.g., clean water kiosks)Data collection opens avenues for targeted marketing and unprecedented customer support and retentionRevenue-Generating StageEstablished manufacturing, Quality-tested products, PAYG sales in countries to dateEffective PartnershipsVodacom Tanzania (MPESA TZ)MIT/Sloan, Institute for Poverty Action (IPA)Distributor relationships incl.ToughStuff International, Barefoot Power, Zamsolar, SunnyMoney etc.Strong TeamStanford/UT Austin/UCLA educated (2 PhDs, 1 Masters in Engineering)Extensive experience in our target marketsChange to 3 countries – no current sales in Uganda