Wednesday, 22 November 2017 Sydney
RSS
Connect
Newsletter

Barefoot Power a social for-profit enterprise looking for capital raise::

 

Company Name

Barefoot Power

Seeking

Capital Raise

Executive Summary

Barefoot Power is an award-winning, energy company primarily focused on the design, manufacture and distribution of affordable, efficient lighting systems to poor people in developing countries. To facilitate this, Barefoot Power takes an active role investing in projects, supply chain partners and micro entrepreneurs. By replacing kerosene lighting, Barefoot Power will address energy poverty and deliver compelling cost, health and safety benefits to 1m people in 2010 and 5m by 2012.

Barefoot Power is a first mover in this sector. The retail cost of a rechargeable LED lamp is from US$5, and US$13 for a solar- powered version. The company has generated approximately $2m in revenue in last 12 months.

Barefoot Power’s current target countries are Uganda, Kenya, India and Indonesia that have a combined spend of US$2.5bn on kerosene by 500m people. These markets will represent 80% of revenue.

We have BDMs on the ground in these locations and aim to take equity positions in local importation/distribution companies. We also package training, support, manuals, linkages to finance all coordinated by a free ERP system to deliver bottom line efficiencies.

Key investors include Oikocredit, one of the world’s largest lenders of microfinance, which facilitate end-customer financing and supply chain financing.

Competitive Advantages

• Award Winning: Winner of three 1st prize awards recognizing high performance, affordable, off-grid lighting systems for low-income earners in Sub Saharan Africa

• Compelling Pricing: $5 - $25 retail prices, yielding 3-6 month payback for customers who spend $1/week on kerosene, delivering a cost effective, healthy, safe, efficient replacement

• Negligible Competition: Philips and Osram have attempted, but have not developed competitive products. Other startups have not matched our price/quality.

• Sustainable JV/franchise model: Our JV partners have recorded positive results and are ready for scale. Our “business-in-a-bag” has employed hundreds of entrepreneurs across Africa

• Microfinance mobilized: Approximately, 40m microfinance clients spend $1bn/yr on kerosene lighting. Oikocredits’ network of 700 microfinance institutions provides a massive platform for end consumer / retailing who have repaid 98% of loans in recent years.

• European Grant support: Ability to train 2000 entrepreneurs, further develop ERP systems and carbon credits monetization with EUR1m grant.

Key investment points

• Key Strategic Investors: Investors include Oikocredit, the European Investment Bank, Good Energies Foundation and CSR Capital.

• Solid Returns: Debt investors have earned 10-12% annually from our Barefoot Angel Debt Fund. An IRR of 20-40% is expected for equity investors. IPO ready by 2014.

• Reduced Investor Risk: Cash sales have allowed investors to make debt investments at 8-15% p.a. for just 6-12 months. No other cleantech matches this fast exit.

• Strong Governance: Oikocredit provides Board-level oversight and Credit Committee review bringing 30 years of emerging market experience with a zero loss record.

• Strong Sales: $1.8m since July 2009. $750,000 of existing orders to be filled. Aiming for $500,000 monthly income by late 2010 equating to up to 300% growth for 2010-11.

• Inventory Funding: Funding is for order fulfilment to minimise investment risk.

• Carbon Credit Positive: Eligible for Carbon Credits revenue when applicable.

Company Structure

Pty Ltd

Management Structure

 

Stewart Craine and Harry Andrews

Co-Chief Executive Officers

The Founders have 20 years combined engineering and project management experience in the energy and development sectors, including all technologies and watt-to-MW scale of projects.

Steven Wright - Chief Financial Officer

Steven is a CPA with recent emphasis on startup green technology businesses, including Chief Financial Officer for Chromasun, Inc, an innovative start-up company operating in the US and Australia and as Consultant to both Crucible Carbon Pty Limited and Aquation Pty Limited.

Other Board members include David Hind (ex-Managing Director of BOC Gas - Australia), John Altman (Executive Director of Grace Foundation) and Stefan Harpe (Oikocredit Equity Investments Manager).

High Net Worth investors and advisors include Jordan Green (Melbourne Angels Inc, AAAI) and Jigar Shah (CEO of Richard Bransons’ Carbon War Room, previously of SunEdison)

A dedicated CEO will be secured for the business by late 2010.

Exit Strategy

 

Debt investors may exit in as little as 6 months – 40 deals have been secured in the last 2 years of 6-36 month terms, with 10 exits, 10 renewals, 1 conversion to equity, average return of 10-12% p.a. and zero defaults. ASX IPO conditions will be met by 2013-14, but a trade sale to a corporate customer or competitor is also possible. IPO via a merger with our Chinese solar supplier also has potential.

Contact Details

 

Stewart Craine at stewartc@barefootpower.com or

Harry Andrews at harrya@barefootpower.com