May. 11, 2017
Berlin/ Silicon Valley
In April, Mobisol and Lumeter partnered in the off-grid PayGo energy industry, creating synergies between Mobisol’s solar hardware distribution for off-grid clients and Lumeter’s infrastructure for PayGo payment platform. The combined two companies create an unrivaled player with strong pricing power and expertise in the metering sector.
Combining two known industry brands, their plan focuses on short-term cost savings, and long-term strategic opportunities for growth, which are abundant in this emerging market. There is a complementary fit across products, distribution, and geography.
For Mobisol ramping up in the metering sector, Lumeter’s scale and focus on growth could not come at a better time. It offers greater control over this important market, something that ought to improve operational effectiveness. The deal also creates new revenue opportunities in business services.
“Taking all of these factors into account, our businesses housed together may in itself unlock incremental synergies as our products and businesses would benefit from being managed together. We also think it’s likely to help Mobisol command a higher valuation and top line growth over time” said Josh Rosen, CEO of Lumeter. Lumeter’s founder Mitra Ardron added: “Our technologies and markets are highly complementary. Bringing the best of both companies technologies together will expand the functionality of the technology and the range of hardware products that can be offered, and open up new markets for both companies products.”
Over the past years, Lumeter has professionalized its software to support products and services that build on micro-finance schemes in order to be affordable to the millions of households that are still without reliable access to energy. Headquartered in San Francisco, USA, and having its operational head offices in Nairobi, Kenya, Lumeter has reached a key position in making energy services accessible to decentral and rural customers.
International investment and interest in the off-grid PayGo business has seen a large shift over the previous months, including a large equity round that Mobisol had completed in fall 2016. Besides existing leaders in the PayGo platform sector, such as Angaza Design, the partnership between Mobisol and Lumeter combines knowledge, resources, and their customer bases reaching a joint client base of over 100,000 end-users in 2017.
Through this partnership, two leading companies in the sector will be sharing expertise. “At Mobisol, we are glad to have found an experienced and qualified partner with a large network in the PayGo software space, whilst we are looking forward to bringing in our innovation capacities in solar hardware solutions.” said Stefan Zelazny, CIO of Mobisol.