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Access to Energy for the Base of the - Ashoka

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48<br />

--- � Problem magnitude: globally 1.6b people without<br />

electricity rely on kerosene lamps <strong>for</strong> <strong>the</strong>ir lighting<br />

needs<br />

Difference in light quality between kerosene lamp and<br />

D.light Nova<br />

Mobile charging on a Nova S200<br />

Project ability <strong>to</strong> solve <strong>the</strong> problem<br />

�� LED lighting benefits:<br />

�� 8-10 times brighter than kerosene<br />

�� Safer (no lethal gas exhausts / fire risk)<br />

� Targets as low as BOP500:<br />

�� Nova Series prices: $25 <strong>to</strong> $40<br />

�� The Solata prices: $12 <strong>to</strong> $20<br />

�� Cost saving on kerosene spending: return on<br />

investment in approx. 8 months<br />

�� Micr<strong>of</strong>inance <strong>for</strong> low BOP500 cus<strong>to</strong>mers<br />

� Needs addressed: lighting <strong>for</strong> education, household<br />

activities and working at night<br />

� Sustainability:<br />

�� 5 years lamp life expectancy<br />

�� Replaceable battery (every 1-2 years)<br />

� Use existing battery recycling industry<br />

� Impact (March 2009):<br />

�� Improved lighting <strong>for</strong> >150k lives<br />

�� Strong distribution reach: >500 Indian and<br />

African selling points<br />

Project economic viability Project scalability<br />

� D.light is a <strong>for</strong>-pr<strong>of</strong>it business:<br />

�� Still in investment phase<br />

�� Break-even expected in coming years<br />

� Network <strong>of</strong> <strong>for</strong>-pr<strong>of</strong>it retailers: margin varies<br />

depending on region and channel<br />

� No subsidies <strong>for</strong> main business:<br />

�� “Give Light” donation program is a side <strong>of</strong> main<br />

business stream and at limited scale (~600<br />

lamps)<br />

� Proven ability <strong>to</strong> attract private inves<strong>to</strong>rs:<br />

�� Successful $1.5m initial funding<br />

�� $4.5m Series A financing from 6 inves<strong>to</strong>rs, incl.:<br />

Acumen Fund and Nexus India Capital<br />

� Unregulated market <strong>of</strong> billions <strong>of</strong> cus<strong>to</strong>mers (incl.<br />

>500m in India)<br />

� Proven scalability (global supply chain):<br />

�� Distribution networks in ~10 countries<br />

�� International shipping capabilities<br />

� Limited competition:<br />

Sources: Hystra analysis; Interviews with D.light Design Direc<strong>to</strong>r <strong>of</strong> Communication and HR; www.dlightdesign.com<br />

�� Cus<strong>to</strong>mers who experienced LED lighting prefer it<br />

<strong>to</strong> kerosene lamps / candles<br />

�� Market is still “untapped”: <strong>for</strong>-pr<strong>of</strong>it competi<strong>to</strong>rs<br />

(e.g.; Cosmos Ignite, Barefoot, SELCO, SEF) sold<br />

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