kamworks: Kamworks PAYGO Solutions
Kamworks is a leading solar energy company and a pioneer in the PAYGO technology. It was established in Cambodia in 2006 by Dutch Engineers. Since then, it created an impact in the lives of more than 150,000 people. In 2007-2012, they developed and sold 30,000 solar lanterns in Cambodia. In 2008-2014, they developed and installed 12,500 SHS and today, they have installed 700 Solar Home Systems (SHS) which represents 96% of PAYGO SHS market in Cambodia. Kamworks is currently present in 3 business segments such as solar EPC and system integration, utility/solar IPP(Cambodia) and PAYGO solutions (global).
They have developed and proven PAYGO solution for solar home systems that unlocks financing and uses mobile money, mobile data, and artificial intelligence to reduce cost and improve service. Highly energy efficient air-conditioning (A/C) units with short payback times are available for consumers but have high upfront costs. Kamworks aims to use PAYGO to unlock financing for such products. Over the next decade, hundreds of millions of households are expected to install A/C units in their homes.
Kamworks’ fully integrated PAYGO solutions address challenges of collecting repayments, save cost on service/repairs and data collection and help provide many more low income households with the opportunity to purchase a SHS or energy efficient appliance.
What problem are you trying to solve? Who has this problem?
Over the next decade, hundreds of millions of consumers in developing countries are expected to purchase solar home systems (“SHS”) and grid-tied solar roofs, as well as home appliances such as air conditioners, washing machines and refrigerators. These products provide a better quality of life to consumers and help mitigate greenhouse gas emissions.
Financially, the solar systems also have reasonable payback periods (1 - 5 years).
However, consumer adoption suffers from a lack of end-user access to financing. There is a challenge of unlocking consumer financing for solar and energy efficiency appliances in developing countries.
Further, the PAYGO technology is not widespread, especially in Asia and the Pacific. There are only 20 companies (20%) that are active in Solar Paygo, 10 are offering Paygo services to B2B market, mostly only hardware.
Following the successful introduction of PAYGO SHS technology in Cambodia, Kamworks is launching PAYGO Solutions, offering its proprietary PAYGO technology B2B to distribution companies in Cambodia and abroad. Kamworks is targeting companies in two market segments, (1) SHS distributors and (2) Consumer Financing Organizations. This technology can reduce the cost of debt collection and repossessing assets, ultimately de-risking financing, increasing customer base, allowing them to charge lower interest rates, and reducing default rates.
Kamworks’ growth strategy is to first offer its PAYGO solutions to SHS distribution companies in target geographies, while building partnerships with MFIs and proving the concept of PAYGO for consumer financing by 2020. Investing in Kamworks PAYGO solutions offers an opportunity to apply a business model that has become a game changer in off-grid solar where financial inclusion and asset control are equally important. Today, it is selling SHS with PAYGO capabilities in Cambodia, offering SHS on credit to consumers that cannot afford upfront investment. Consumers instead pay monthly installments with mobile money and through its proprietary technology. The combination of SHS hardware and in-house software platform help Kamworks achieve significant operational cost savings in cash collection and allows the company to serve previously un-served market segments.
Jeroen Verschelling, Chairman and Co-founder
· Business experience in solar PV and energy conservation