Source: MAGNiTT
Pawame, a UAE-based renewable energy startup has secured a $2.5M investment, with $1.7M of the amount secured in the form of grant commitments, plus $750K in equity, including $250k from Launch Africa.
Founded in 2016, Pawame offers a portfolio of innovative, high-quality solar home systems in remote areas of Kenya on a micro-financed basis, using mobile money repayment, making it affordable for everyone to access safe, clean and reliable energy. The startup's business model also uses energy as a bridge to help families build a credit history and then gain access to other life-changing products through Pawame, products that they would otherwise be unable to access or afford.
Alexandre Allegue, Chairman and Co-Founder of Pawame, mentioned “I am extremely proud of this announcement, as despite facing challenges during the pandemic, Pawame delivered exceptional results in 2020, including achieving bottom-line profitability and positive cash flow for the first time. We accomplished this thanks to our unique and sustainable value proposition, alongside a cost-effective execution and an exceptional team.”
Maurice Parets, CEO of Pawame, remarked “Energy is just the beginning, supplanting dirty kerosene lamps, our solar products help protect as well as change the lives of off-grid families.”
Baljinder Sharma, Director at Launch Africa Ventures, commented “Our thesis for investing into Pawame is simple: without electricity or connectivity, individuals are excluded from the exponential growth that an increasingly digital world has to offer. Although Pawame's products essentially offer off-grid hardware with an affordable pay-as-you-go model, their value offering is far beyond simply electricity - which will be a defining factor for the company as they bring economic growth to a historically excluded set of people.”
Pawame is on target for its geographic expansion within and beyond Kenya. The startup also plans to electrify over one million people in sub-Saharan Africa that do not have access to grid power by 2025, and extend its product range to other life enhancing products, including income generating appliances such as water tanks, solar water pumps and solar refrigerators. These will empower many families in rural areas to start their own business, and enable farmers to extend the life of their crops.
