Energy | India | Test and Transition
- The development problem: 400 million Indians and 1.5 billion people worldwide lack reliable access to electricity. They are already spending $50+ billion per year on unclean solutions, such as kerosene fuel for small lanterns. These solutions are frequently expensive, environmentally damaging and unsafe.
- The innovation: Simpa customers make a small initial payment to get a solar electric system installed at their home or business. Customers then purchase "energy days" using a prepaid or pay-as-you-go mobile payment system. Upon completion of the contract, customers can take ownership of their systems, receiving clean electricity. The model is enabled by Simpa's patented technology platform. Since its inception, Simpa has sold over 4 million clean energy days, delivered over 1 GWh of clean power, and created over 3,000 full and part-time jobs in rural India.
- GIF’s investment: GIF’s $2.3m equity investment (as part of a larger equity round of $8.4m and matching debt commitments of $6.5m) will enable Simpa to expand geographically into thousands more villages and towards its goal of 10 million solar rooftops.
- Why we invested:
- An organisation committed to learning/experimenting and receptive to feedback, and overall a leading candidate relative to other Indian solar home system solutions
- A talented and diverse set of operating and financing partners
- A strong operating team with a good mix of deep local knowledge and international experience