CUSTOM CHALLENGE; KENYA
PROVEN INTERVENTION TO BE DISTRIBUTED
A PayGo Energy device which couples onto any cylinder in the Liquefied Petroleum Gas (LPG) ecosystem and leverages mobile money and machine to machine technology to deliver LPG on a pay-as-you-go basis.
Learn more about the Custom Challenge and why we only fund ideas that focus on distributing proven poverty interventions.
DISTRIBUTION MODEL INNOVATION
Liquefied Petroleum Gas (LPG) is the de facto cooking fuel for developed nations because it is clean (50 times less polluting than charcoal) and affordable. However, BOP customers are traditionally financially excluded from LPG due to the high upfront cost and rigid payment system. The LPG supply chain and retailer hub infrastructure is already in place in Kenya and other countries to reach BOP customers but marketers and retailers need a smarter distribution model and product to reach urban and rural BOP customers and fit within their daily budget.
The PayGo Energy device delivers payment, location, and LPG usage data at the unit level through GSM technology. Partners receive critical insights into customer usage that helps them deploy their fleet more effectively. In urban areas, they are able to maintain their cylinder fleet within informal settlements through orchestrated refilling runs, combating illegal refilling and increasing customer retention. Within rural settings, where BOP customers do not have the benefit of a robust LPG retailer network, location and consumption data will provide the insights necessary for a paradigm shift in distribution.
PayGo Energy will partner with LPG marketers and overlay onto the existing LPG infrastructure. Due to the fragmented nature of the retailer and gas station LPG ecosystem, prioritizing marketer partnerships over retailer partnerships is a fundamental component of our strategy. The PayGo smart meter technology enables micro-asset financing and pay-as-you-go functionality that critically align with BoP customers’ variable income streams. The business model will be a service fee per transaction.
PILOT AND SCALING GOALS
- Fabricate 10 units during the pilot
- Install in 10 households during the pilot
- Post 100 household PoM, team will seek Series A funding to build network capacity, reduce unit cost, and build full operations to handle up to >100,000 households with one or more marketer partners
Nick Quintong - Co-Founder
Fausto Marcigot - Co-Founder
Laura Talsma - Co-Founder