Access to Energy for the Base of the - Ashoka
Access to Energy for the Base of the - Ashoka
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 />