Digital Transformation of LPG distribution: A case study on the use of IoT to accelerate market adoption and combat illegal practices.

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3 BILLION PEOPLE

Lack access to modern fuels

Emerging markets have the greatest potential for LPG growth

Emerging Markets also have their challenges

1. The majority of consumers purchase fuel on a daily basis and cannot afford full cylinders.

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CHARCOAL$0.50* daily

KEROSENE$0.50* daily

LPG$24* per 13kg refill (~$0.26 daily)*September 2018 Kenyan market prices

Emerging Markets also have their challenges

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● Illegal refilling

○ In Kenya up to 60% of LPG sold is illegally refilled.

○ Oil Marketing Companies lose control of their cylinders eroding gas margins.

A new approach - The Virtual Gas Grid

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Turn every cylinder into a connected device Digitize downstream LPG operations

LPG cylinder smart meter:● Sell gas in small amounts.● Monitor cylinder fuel level

remotely.

The PAYGO PLATFORM allows wholesalers and retailers to control their cylinder fleet and provide a better service for their customers.

Why pay-as-you-goMost products are sold in small amounts to meet the needs of the mass market

Charcoal and kerosene are sold in small amounts

Soap is sold in small amounts

Credit is sold in small amounts

Electricity is sold in small amounts

~$40 to start cooking and ~$10 to refill a cylinder Gas is only available in large volumes

Register and pay for service

Top-up account using mobile money

When the meter balance is zero access to gas is shut off

Uninterrupted supply of gas with on demand delivery

Credit: 0X

How it Works

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HUB Management - Closing the loop

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Agent App

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Pilot Results

Completed 1 yr - 300 household pilot

● Average consumption 12kg per capita.● 86% of customers are 1st time LPG users.● Average sale price was 186 kes per kg/$1.85

per kg● 2% Cylinder Loss● 98% customer retention

Average top-up $3.60

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Pilot Results - Top-Up amounts increase over time

Daily Consumption amount vs Average top-up

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Raised $1.4M SERIES SEED

Raised $3.5M SERIES A

December 2019SERIES B

2017 2019 2021

VALIDATE MODEL300 Smart Meters

GO-TO-MARKET5,000+ Smart Meters

SCALE REGIONALLY100,000+ Smart Meters

SCALE GLOBALLY1 M+ Smart Meters

2018 2020

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If you are interested in learning more..

Visit our website

Website: www.paygoenergy.co

Contact: Fausto Marcigot, CTOfausto@paygoenergy.co

Thank You

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