Join 67 others & invest in Pawame

Early Adoption Discount

  • 1st.

    First Tranche

    Shares will be sold at a 15 % discount

    €0 share value remaining

    €2.91 Price/Share

  • 2nd.

    Second Tranche

    Shares will be sold at a 10 % discount

    €0 share value remaining

    €3.08 Price/Share

  • 3rd.

    Third Tranche

    Shares will be sold at a 5 % discount

    €7,437.96 share value remaining

    €3.26 Price/Share

  • 4th.

    Fourth Tranche

    Shares will be sold at a 0 % discount

    €75,752 share value remaining

    €3.43 Price/Share

Minimum investment size 500 500

How much do you want to invest?
in
Available for investment $243,346
Exchange rate applied for this proposal:
Number of shares to be purchased$
Price/Share before discount$
Note: This proposal accepts overfunding; remember it is optional whether the proposal owner decides to accept any overfunding commitments.
Invest Cancel

Why Pawame?

Why invest?

1. Huge market: Sub-Saharan Africa is a massive, untapped market of off-grid consumers. There are over 600 million people here without access to electricity. These same populations are already paying for dirty-burning alternatives every day, for which they have to walk long distances, pay high prices, and suff ... see more.

Notable Press

a

The Investors

2 new
Diamond Investor
Gold Investor
Gold Investor
View All Investors

Join us to see more

Please login/register to see the Proposal Forcasts/Financials.

Latest Update

The Team

Chairman, Co-founder
CTO, Co-founder
CIO, Co-founder
Sales Director
Human Capital Manager
Meet the Team

Pawame provides clean, reliable solar energy to Africa's off-grid population. But energy is just the beginning.

Why Pawame?

1. Huge market: Sub-Saharan Africa is a massive, untapped market of off-grid consumers. There are over 600 million people here without access to electricity. These same populations are already paying for dirty-burning alternatives every day, for which they have to walk long distances, pay high prices, and suffer serious health effects. There is also a dearth of financial services and qualifying for and getting product financing or loans is nearly impossible. This market has been very poorly penetrated, less than 5% by all players combined. Our market is nearly limitless and there are estimated billions of USD in value to be captured in the off-grid market.

2. Irresistible customer value proposition: We offer an unsurpassed customer experience (product + service) combined with the opportunity to build credit and to access to life-changing products, which keeps customers coming back. We’re the only company operating in this space that focuses specifically on the customer-facing end of the value chain.

3. Attractive financials: Our product has strong unit economics, with a gross margin of about 50%. Add-on products have even better margins because the acquisition costs are far lower. Our portfolio is healthy, with a ~1% default rate among repeat customers. Along with lean operations, all of this means we are on track for profitability in 2019.

4. Proprietary software and data: Our in-house, machine-learning-driven intelligent portfolio management and CRM capabilities represent a source of long-term competitive advantage and financial value. We are collecting data that constitutes digital footprints for off-grid populations who have traditionally been ignored.

5. Proven market traction: As a pioneer in frontier markets, we’ve reached over 7,000 Kenyan households, in 14 counties, in just over two years. We work from Narok in the South of Kenya to Turkana in the far North, where we operate in Kakuma refugee camp. Our market penetration is achieved locally, with over 200 sales agents in the field, who are well able to sell in remote, off-grid communities. We have a partnership and pilot project in Somalia and plan to expand to be a pan-African company that affects 1 million lives in the next five years.

6. Enduring social impact: We have enhanced the lives of 40,000 Kenyans by providing light for study, increasing household incomes, and providing an alternative to unsafe fuel sources. Our work has been studied by wPower and Trine, proving our impact in the lives of rural women and subsistence farmers. Access to finance puts products previously unimaginable within reach of our off-grid customers who, prior to their relationship with Pawame, had no access to product financing or loans. We are piloting a range of life-enhancing add on products that connect people and facilitate access to better health and education. We’re very proud to begin offering school loans.

Notable Press

a

The Business

Join us to see more

Please Login/register to see the proposal business.

Pawame aspires to an electrified Africa, where energy is just the beginning. We focus on delivering value to the customer, starting with a high quality solar home system. Then, we work with customers to build credit history, harnessing the power of data to unlock access to a range of life-enhancing products, which can transform communities.

We serve the off-grid Sub-Saharan market, which is a massive, largely untapped source of value. 600 million Africans today do not have access to electricity. Clinics, schools, and local businesses require an electrical connection, yet in many places where Pawame works, connection to the grid remains elusive. People walk far distances for dirty-burning kerosene or to charge their phones, and pay more per unit of energy than consumers in the developed world. Going out to fetch energy can be dangerous, especially for women, and takes time away from value-generating activities, adding a significant opportunity cost to the already high prices. Pawame offers a cheaper, cleaner, safer and more long-lasting product. For the company who can access and serve these communities thoughtfully, there is a huge opportunity, estimated to be worth billions (USD) in Kenya alone.

This is just the beginning. Pawame uses proprietary machine-learning software to work with customers to build credit histories, collecting a body of data to create digital footprints for customers who have never been accessed before. This allows Pawame to confidently, at better rates, offer product and loan financing that unlocks access to a range of previously unimaginable products. We plan to offer add-on products ranging from productive-use solar technologies like solar irrigation systems and solar refrigerators to development-amplifying microloans like school loans. This long-lasting value proposition deepens our customer relationships and increases margins (acquisition costs are lower for add-on products). That’s why we’re excited to expand, but are uniquely focused on the customer-facing aspects of our business model. We see more mutual value in offering a long-term relationship and high quality products, rather than rapidly distributing simple solar lamps.

Pawame is an aspirational company that imagines a future Sub-Saharan Africa, which has leap-frogged old ideas of electrical infrastructure and is connected, ready for exciting economic growth. Our business model is designed to accelerate the achievement of this goal, and puts Pawame at the locus of change on the continent, where there is enormous hope, excitement, and value.

We’re inviting you to join us there, at the center of it all--to see where we can go when we imagine that energy is just the beginning.

The Sub-Saharan home solar market is one characterized by overwhelming opportunity. In 2017, The IEA estimated that more than half of the billion people globally without power will be brought online with home systems and mini-grids by 2030.

Naturally sunny, East Africa is a market perfectly primed for home solar, where a home system can easily store enough charge throughout the day to power several additional work or study hours in the evening. The advent and voracious adoption of mobile money has also made East Africa uniquely positioned to become a global hub for home solar. Reliable and secure, mobile money has garnered a high level of trust in the local market, which enables easy pay-as-you-go financing. In Kenya specifically, household income is slightly higher than in neighboring countries and the market is familiar with the product, which has faced no well-documented cultural hurdles to implementation. Plus, the government is friendly to home solar as it’s a tenet of its 2030 electrification plan.

Moreover, the time is right. The industry has seen over $875+m in direct and indirect investments, and 31 joint ventures have been formed to support solar home system development and proliferation. This has pushed the industry to a real precipice, but investment has been concentrated in just a few large players. More investment is needed to really push home solar over the edge, but new financing needs to be reserved for agile, new players, like Pawame who seek disruption and creativity outside the scope of the solar home system model, which has now existed in relative stagnation for nearly ten years.

Though there are a few large solar home system companies, there has been notable stagnation in the last ten years and Wood Mackenzie, in their 2019 report calls these “top heavy leaders” “overvalued” and calls for investment in a range of players. Pawame sees themselves as distinguished from its competitors by a range of factors including their supplier agnostic approach, unique customer-facing strategy and focus, and drive towards financial sustainability. As an agile, new company, Pawame is well-positioned to disrupt the industry by offering more customer value and by leveraging innovative technologies to deliver their solutions.

It’s almost hard to capture just how much opportunity there is in the Sub-Saharan market and how much value is left on the table. Only about 2% of all off-grid households have been reached with home solar systems, and once these communities are connected to the electrical grid, there is a world of further product possibilities that open up. The rural, off-grid communities Pawame serves are often spoken about in terms of extreme need, which is accurate, but Pawame prefers to see extreme opportunity, a chance to create mutual value and to really deliver a win-win solution.

Funds will be used to:


  1. Attract and retain top talent. We have a leadership team that combines 50+ years of experience in energy, entrepreneurship, management, and developing markets; and we’re lucky to have had talented contributors to Pawame’s success over time, but we experience high churn because we have not yet been able to offer competitive salaries. This affects the business at all levels, from the field where we experience this problem with our sales agents to the top levels of corporate development management. Pawame is able to offer an extremely attractive work environment and employee satisfaction is very high, but connecting the circle with competitive salary offers would enable us to complete our world-class team.


  2. Pilot new and innovative products. Pawame seeks to build a catalogue of add-on products that are useful, desired by our customers, and that create value in their lives. Understanding what these products are and how they affect our customers is absolutely crucial to our success and requires significant research, development and piloting. As supplier agnosticism is a pillar of our model, we strive to continue to find the best, most innovative, and most competitively priced products available. Constant product piloting allows us to take advantage of this supplier-neutral approach. We also want to be at the cutting edge of productive-use solar technologies and plan to pilot a range of products including solar fridges, irrigation pumps, smart phones, and more. Plus, we want to begin piloting disruptive last-mile delivery strategies that could lower costs and increase impacts. We can be very agile in our product offerings--this is one of our key strengths--but it requires capital to try out different products.


  3. Further invest in portfolio management and data analytics capabilitiesas a source of competitive advantage. Pawame’s unique approach hinges on its command of customer data, which allows them to confidently offer product and loan financing, which has higher margins and deepens customer relationships. Pawame is constantly improving its data analytics and machine-learning capacities. We have a Manager of Data and Analytics, but we want to distinguish ourselves by investing further in our data analytics capabilities.


  4. Launch retail locations. Pawame currently operates via sales agents in the field and has a kiosk presence, but wants to establish further permanent retail locations in the field to build our brand and name recognition in the field.


  5. Finance burn rate until achievement of cash flow break-even in 2019. Pawame focuses on lean, cost effective operations and will achieve cash flow break-even in 2019, just three years after its founding. Until then, we do need cash to maintain operations.

Most likely exit would be strategic acquisition by a number of types of companies, including:


  1. A direct competitor seeking increased market share, improved economies of scale, know-how related to our internal processes and capabilities, access to our brand and portfolio of loyal customers.

  2. An indirect competitor with a complementary product range and/or customer base, such as players addressing the C&I sector or higher-income bracket with larger products.

  3. Utility/energy company seeking access to the 70% of sub-Saharan African consumers that they are unable to reach via the grid. (Note: peer company Fenix International was recently acquired by Engie.)

  4. Energy- or Africa-focused private equity firm that sees value in strong cash flow and consolidation potential.

  5. Financial institution seeking access to our customers and our expertise in lending to low-income consumers.

  6. FMCG company seeking access to fast growing rural & peri-urban household market.

  7. A SHS hardware manufacturer seeking to integrate down the value chain.
    Distributor of electrical appliances and accessories seeking (a) unfettered access to our distribution network and/or (b) access to our pay-as-you-go platform, via which they can make their products more affordable.


There is also the potential for investors to exit at future investment rounds.

Public documents

The Investors

Early Adoption Discount

  • 1st.

    First Tranche

    Shares will be sold at a 15 % discount

    €0 share value remaining

  • 2nd.

    Second Tranche

    Shares will be sold at a 10 % discount

    €0 share value remaining

  • 3rd.

    Third Tranche

    Shares will be sold at a 5 % discount

    €7,437.96 share value remaining

  • 4th.

    Fourth Tranche

    Shares will be sold at a 0 % discount

    €75,752 share value remaining

0 - 8,912

Gold Investor
Gold Investor
Platinum Investor

8,912 - 89,120

Gold Investor
Gold Investor
Gold Investor

89,120+

Diamond Investor

All Followers

Financials

Join us to see more

Please login/register to see the Proposal Forcasts/Financials.

Updates tab

Q&A

Join us to see more

Please login/register to see the Proposal questions and answers

Comments

Join us to see more

Please login/register to see the Proposal comments