Sistema.bio

Period

2019

Country

India, Kenya, Mexico

Sector

Renewable energy

Financial facility

ElectriFI

ElectriFI invested USD 2m in Sistema.bio in May 2019 and in December 2020, together with Engie RDE and Co Capital, an additional investment of USD 0.6 million to help the company’s scale up and international expansion. Sistema.bio manufactures, distributes, installs and finances biomass digesters for small and medium scale farmers. The biogas produced is then used for cooking, heating, or electricity generation. The investment aims to support Sistema.bio’s rapid scale up in Latin America, East Africa, and South Asia.

Project overview

ElectriFI contracted a USD 2m equity loan alongside Engie RDE, DILA Capital (and potentially others) to enable the company to continue its scale up and international expansion principally in Kenya and India.

After an initial equity investment of USD 2 million in 2019, ElectriFI has invested another USD 600 000 (convertible note) alongside existing investors Engie RDE and Co Capital, as well as new investors, to enable the company to continue its scale up and international expansion principally in Kenya and India. The convertible note has been since converted in equity.

Sistema.bio manufactures, sells, installs, finances and services a range of modular biogas digesters and accessories design for smallholder farmers. Since its inception in 2010 the company has installed over 13.500 units from hubs in Latin America, Kenya and India. Designed to serve farms from two to 200 cows, the product range varies in size from a single 6m³ biodigester, to a number of interconnected 40m³ units. With the biogas produced, an average household of five can do all its cooking with the smallest unit. Besides cooking, the larger systems can also be used for water or space heating and mechanical/electrical appliances such as a chaff cutter, water pump or milking machine.

Funding objective

EDFI ElectriFI will invest USD 2m in equity alongside Engie RDE, DILA Capital (and potentially others). The equity round will enable the company to continue its scale up and international expansion principally in
Kenya and India. Debt in this round will be provided by Lendahand, Triodos Bank and Alphamundi. After an initial equity investment of USD 2 million in 2019, EDFI ElectriFI will now invest another USD 600K (convertible note) alongside existing investors Engie RDE and Co Capital, as well as new investors. This current financing is considered a bridge round to a further capital increase in 2021, to enable the company to continue its scale up and international expansion principally in Kenya and India.

Investment rationale

ElectriFI supports this company because of the high E&S impact of biodigesters, through replacing solid fuel by clean renewable energy cooking, as well as waste management, production of biofertilizer and a number of health benefits. Also the company has proven best-in-class technology, and a very complete service offering including financing and thorough after-sales and quality management.