Global Partnerships Invests $100,000 in PayGo Energy
The Global Partnerships/Eleos Social Venture Fund (SVF) has made a seed investment of $100,000 in PayGo Energy based in Nairobi, Kenya. PayGo Energy is a distribution service that provides an affordable supply of clean cooking fuel to homes in East Africa.
Urban households living at the base of the pyramid spend a relatively large amount of income ($0.50/day) on ‘dirty’ fuels like charcoal that expose households to health and safety risks, and are currently priced out of Liquefied Petroleum Gas (LPG) market.
This impact investment is the first in GP’s new Cookstoves investment initiative, which is designed to enable low income clients to access clean and affordable stoves and fuel for cooking. 500 million families in developing countries face serious health risks by the pollution from traditional cooking methods. Each year, 4.3 million people die from inhaling indoor air pollution. Collecting and using traditional cooking fuels like wood and charcoal are inefficient and can be the single largest household expenditure.
“We began our engagement with PayGo Energy over a year ago by funding strategic advisory work that helped the company refine its business plan and position itself for significant investment,” said Jim Villanueva, SVF Managing Director. “More recently in February of this year, our $100,000 investment provided critical catalytic funds to enable the company to continue its growth trajectory and complete its fundraising by attracting over $1 million in equity investment in April.”