Closed Deals

Behind the Deals: Case Studies of Impact Investment Deals
IIX has been securing investment capital for Impact Enterprises (IEs) that have generated interest because of their innovative structures and opportunities for high impact; this involves end-to-end facilitation processes, including the establishment of impact frameworks and assessments. A few of these deals are featured below to serve as potential learning tools for future impact investments.


SOLshare



Bangladesh has 3 million solar home systems (SHS) – but households with SHSs have underutilized capacity. On the other hand, 12 million households have no access to electricity with the SHS scheme being unaffordable for the poorest rural families. ME SOLshare (SOLshare) was set-up with the innovative vision that energy sharing between individual standalone solar home systems can mitigate the limitations of decentralized rural electrification and contribute to a significant alleviation of energy poverty in Bangladesh. Through SOL share’s solar charge controllers, SHS households will be able to share their energy with their neighbours. This innovative technology will provide 12 million households with the opportunity to purchase energy from SHS households at an affordable price.

IIX was first introduced to SOL share in October 2013 through the Climate Technology Initiative Private Financing Advisory Network (CTI PFAN) where IIX mentored SOLshare at CTI PFAN’s Asian Forum for Clean Energy Financing 4. In August 2014, with the help of IIX, SOLshare received a €50,000 grant from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Bangladesh matched with €50,000 in-kind support from SOLshare’s partner Solar Energy Research Institute of Singapore (SERIS) to be used for research and development as well as pilot set up. SOLshare is currently in negotiation stage with another funder for a US$100,000 grant to further expand the pilot.

Read the case study here


SEED Schools



SEED Schools
is an Impact Enterprise based in Hyderabad, India. It was established to invest in and operate low cost private schools (LCPS) in India with a strong focus to improve the standard of education. SEED Schools provides a full range of services to improve the learning outcomes and operational efficiencies in LCPSs. It does this by recruiting professionals to manage schools and improving the quality of teachers with better pay and by providing training and tools to effectively deliver content in the classrooms to improve learning outcomes.
IIX began working with SEED Schools in early 2014 and the funding which IIX has facilitated brings the total amount of funding that SEED Schools has raised to US$650,000. This will help it work in one more school and increase the number of students supported to 2,000.

Read the case study here


East Bali Cashews



East Bali Cashews (EBC)
is Bali's first large-scale, environmentally friendly cashew processing facility. It provides employment to women in villages who had never had jobs. American entrepreneur Aaron Fishman founded EBC after witnessing an opportunity for villagers to process and package locally grown cashews in Bali rather than export the nuts overseas for production.

In 2013, EBC partnered with IIX, Shujog (now known as IIX Foundation) and leading global investment firm Kohlberg Kravis Roberts & Co. (KKR) to enhance its financial model and quantify its social impact. Through the collaboration, EBC was able to create a comprehensive business plan and develop a path to increase annual production from 200 tons of cashews to 600 tons. Additional marketing materials and financial projections allowed the company's management to communicate EBC's business plan to global investors. This enabled EBC to raise $900,000 within three months, enabling EBC to triple the size of its warehouse, build a second processing factory and create nearly 200 new jobs for villagers.

EBC is now opening an early learning center that offers the children of the village a first-time chance at pre-elementary school education and gives the women employed at EBC an opportunity to continue their work without concern for child care.

Read the case study here


Providing affordable clean energy for rural India



Frontier Markets (FM) is a last-mile sales and distribution company that offers clean energy products and superior after-sales service to low-income, base of the pyramid (BOP) households in rural India. FM targets consumers who have limited access to electricity and clean water, who reside in rural and semi-urban settings, and who are considered low-income. These consumers are typically agricultural and dairy farmers, laborers, and microfinance clients. FM builds service centers, partners with local channels to gain in-depth access to target households, and creates village-level branded franchises that sell clean energy products with ongoing customer service to BOP families.

FM differentiates itself by providing after-sales servicing and by maintaining an ongoing relationship with customers to develop trust within the community. FM has closed on US$150,000 of funding in the form of compulsorily convertible debentures. This capital will enable FM to impact over a 100,000 families by providing them with safe, clean and economic energy products to their rural consumer base in India, allowing them to save up to US$100 annually on energy costs.

Read the case study here.


Revolutionizing access to drinking water in India



IIX facilitated an investment into Spring Health Water, a for-profit Impact Enterprise that provides safe and affordable drinking water to rural customers in India. The investment will enable Spring Health to expand its operations throughout the Eastern states of India and impact the lives of over 400,000 people.

Read the press release here.


Electrification in Rural Cambodia



IIX facilitated an investment in Sun-eee, a renewable emerging SE focused on providing affordable electricity to rural Cambodia, using biomass and solar energy. The firm's mission is to double electrification rates in Cambodia, which has the region's lowest rural electrification rate and one of the highest tariffs. As a result, clean energy is economically viable there without subsidies, and Impact Enterprises targeting that sector in Cambodia are highly promising areas for investment. The firm's model focuses on acquiring existing Independent Power Producers (IPPs) and making them clean, affordable, and sustainable by linking them to biomass and solar generation sources. IIX arranged a capital raise in the form of convertible notes, which funded Sun-eee's first successful IPP acquisition, while other investors are in the final stages of due diligence before additional capital is committed. The investments will help enable the SE to provide clean energy to thousands of the rural underserved in Cambodia.

Read the case study here.


Sustainable Opportunities for Low-Income Filipino Youth



IIX met BagoSphere, a Philippine-based IE that provides affordable and effective vocational training for low-income, unemployed youth, at an IE competition. Having identified BagoSphere as a high potential IE for both social and financial returns, IIX worked with the IE to raise capital and provide the firm with technical assistance, which included creating an impact framework and projections for Bagosphere. The Framework structures performance management to track and enhance the effectiveness of realizing BagoSphere's social mission and ensures efficient use of human and capital resources to maximize the organization's social impact.

Read the case study here.


Bridging the Gap: Loans for Micro & Small Enterprises in India



Kinara Capital, a lending firm providing US$2,000 to US$20,000 loans with competitive rates to micro and small enterprises in India, was attractive to several investors who were introduced by IIX to the IE at an IIX Showcase. With numerous investors wanting to individually contribute amounts that were smaller than what Kinara needed to close its funding round, IIX structured a special purpose vehicle (SPV) to meet the capital requirements of Kinara and enable these impact investors to participate.

Read the case study here.