Azuri Technologies 2

With a loan of EUR 135,000 Azuri is able to distribute 600 complete pay-as-you-go satellite TV packages to families in Kenya.

  • CountryKenya
  • TypeDirect investment
  • IssuerAzuri
  • Amount€135,000
  • Annual interest6.00%
  • Maturity24 Months
  • CurrencyEUR
  • 10 new jobs
  • 3000 people reached
  • 600 solar systems installed
100%

Fully funded in 14 days.

NOTE: high risk product - direct loan to solar power product distribution company.

Basic Information:

  • Issuer: Azuri SSPV 1 Ltd.
  • Currency: EUR
  • Amount: 135,000 (senior debt)
  • Maturity: 24 months, semi-anually and linearly amortizing
  • Collateral: N.A.
  • Interest rate: 6% p.a.

Non-recall period: N.A. issuer is allowed to repay the loan early at all times against a 2% penalty fee on the amount prepaid. 

Direct loan

This is a direct loan to a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest.  

Available documents

The project (part I)

Azuri has partnered with leading home entertainment satellite provider, Zuku, to deliver the first pay-as-you-go satellite TV package for households without electricity in the Kenyan market, complete with:

  • 24-inch super slim LED TV
  • Zuku SMART+ Satellite TV Service with 54 TV and 21 radio channels
  • 4x high brightness LED lamps, for use inside and outside the home
  • Mobile phone charger
  • Portable radio

With a loan of EUR 135,000 Azuri is able to distribute the first batch of 600 complete pay-as-you-go satellite TV packages to families in Kenya. 

Summary

A spinout from Cambridge University, Azuri Technologies is an innovative commercial provider of pay-as- you-go (“PayGo”) solar home systems to rural off-grid households. The company has one of the widest geographical reach of any solar-as- a-service offering in Sub Saharan Africa, and addresses the problem of energy access that affects over 600 million people who lack access to the grid across the continent.

See an item with Azuri on BBC news

Azuri has combined solar and mobile technology to allow customers to access power on a PayGo basis, providing affordable, clean and safe renewable energy for as little as half the cost of the fossil fuels being replaced. As a pioneer of PayGo solar power when it first entered the Kenyan market in 2012, Azuri has since expanded its reach to 12 African countries, and has sold over 100,000 systems to-date, which are expected to impact more than half a million people.

We are aiming to raise working capital loans to invest alongside Azuri, which will allow us to manufacture and deliver solar home systems to our local in-country distribution partners, including Azuri subsidiaries, more efficiently and faster. The loan will be repaid in 4 semi-annual instalments over a 24-month period from the sales receipts of these systems. These systems are expected to improve energy access for thousands of people across Sub Saharan Africa where more than 600 million persons do not benefit from grid electricity.

Impact

Solar home systems have been shown to have a significant impact on customers and the environment. This has been confirmed by Azuri’s own research over the years. To-date, Azuri has sold more than 100,000 across Africa, benefiting approximately half a million lives (assuming an average household size of 5 persons).

  • ‘My air quality has improved’ (96%)
  • “My family’s previous kerosene-related health issues have reduced” (98%)
  • “I feel safer” (93%)
  • “My children can study more” (97%)
  • “The money I save on kerosene, batteries, and candles I mainly use for my children’s education” (37%)
  • “I have more evening home visits from family and friends” (68%)
  • “I save significant time on fetching fuel and getting my phone charged”
  • “I can spend more time working”

Using industry-recognised Global Off-Grid Lighting Association (GOGLA) impact metrics, Azuri has calculated the social and environmental impact of installing one of its Quad systems in a household as follows:

  • Average number of people benefiting from improved energy access = 5
  • Average household change in additional available hours of light = 4 hours
  • Average household savings on energy over solar product lifetime = USD 200
  • CO2 gas emissions offset per unit over product lifetime = 1.2 tonnes

Management team

Alan Harper (Chairman of the board) - Alan is a leading figure in the mobile network industry with particular involvement in African markets. Alan is a Non-Executive director at MTN, Africa’s largest telecoms provider. In 2008 Alan co-founded ‘Eaton Towers’ a leading independent telecom provider in Africa, with the most diversified geographical tower portfolio, installing over 5,000 telecom towers cross seven African countries.

Simon Bransfield-Garth (CEO) - Simon has 25 years’ global experience building rapid growth, technology based businesses in sectors including Semiconductor, Automotive and Mobile Phones including 7 years at Symbian, where he was a member of the Leadership Team and VP Global Marketing. Simon was founder of Myriad Solutions Ltd and was previously a Fellow at Cambridge University where he also received his BA and PhD in Engineering.

Snehar Shah (GM East Africa) - Snehar was most recently CFO Eaton Towers operations in East Africa. Previously he headed the Mobile Money Business unit or mobile operator Orange in Kenya, where he was responsible for the growth of the consumer service within the Kenyan market. Snehar has a first-class degree from Imperial College, London and was selected for the “Top 40 Under 40” in Kenya by Business Daily in 2012.

Vera Nwanze (GM East Africa) - Vera brings over 20 years commercial expertise, primarily in Multinational Pharmaceutical Companies (Novartis, GSK and Cipla-Evans) holding increasing positions in General Management, Regulatory Affairs, Clinical Research, Quality Assurance, Sales and Marketing across major Sub-Saharan Africa countries.

Nigel Preston (VP Product Management) - Nigel has 25 years’ global experience of embedded electronic systems development and manufacture. Previous positions include European Director of Engineering at Motorola Inc’s Automotive business and COO International Operations for Pi Shurlok. He holds a B.Eng. and Ph.D in Electronic Engineering from the University of Liverpool.

Liam Hickey (CFO) - Liam has significant experience in the establishment of new enterprises and the restructuring of established businesses to expand their global reach and make them more profitable, primarily within emerging markets. In addition to stints working in venture capital in East and West Africa, Liam has held senior commercial and operational finance positions in many multinational companies including Bertelsmann, Ericsson and Digicel.

Awards:

  • Edison Awards 2017 - Gold Award Winner 
  • GCCA 2016 - #1 International Cleantech Company
  • Solar + Power awards 2016 - Rural Electrification Development Award
  • Company nameAzuri Technologies 2
  • OwnerSimon Bransfield-Garth
  • Founded2012
  • LocationNairobi
  • SectorSustainable energy projects
  • Turnover€2,098,285.61
  • Employees50

Impact of this project

About the investment

  • TypeDirect investment
  • IssuerAzuri
  • Funding target€135,000
  • Annual interest6.00%
  • Maturity24 Months
  • Repayment periodSemiannually
  • CurrencyEUR

About the risks

What are the risks of investing money?

Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.

If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.

There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.

How does Lendahand minimize the risks?

Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.

When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.

Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.

Does Lendahand provide guarantee on the loans?

No. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.

Also, for direct loans no guarantee is provided.

Does Lendahand have a license or exemption?

Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).

Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year. 

How safe are my personal details?

We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.

What happens if the local currency devaluates?

Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro.

Does Lendahand use a third foundation fund?

Lendahand works with Intersolve EGI: a Dutch financial institution that specialises in offering services in the field of payment settlement and electronic money. To be able to offer these financial services Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and is in possession of a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve in no way has access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

What happens with my money if Lendahand goes bankrupt?

If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.

Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210

Why is my money going via Intersolve EGI?

As part of the AFM license for investment firms it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the payments. This collaboration offers you more security, since your money is placed on a protected bank account immediately after you have made your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there will be a chance that you lose (part of) the amount you lend. Obviously Lendahand will try to recover outstanding payments, but the success rate will be limited in such situations. For the investor there is no possibility to take action against the financial institution. From a legal point of view the local partners are separated, therefore it is recommendable to spread loans across different local partners.

About Azuri

Total assets€902,038
Revenue€0
Leverage ratio0.00%
Solvability31.00%
Liquidity262.00%

We have already contributed for Azuri Technologies 2

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