- Loan Successfully Funded On 14 Jan 2022 and Fully Repaid
Solve clean cooking & climate change through ATEC* paygo clean cooking
ATEC International
- Melbourne, Australia
Menu
- 120,800 AUD
Loan has been fully repaid
Your loan will remove the upfront cost barriers for over 4,500 Bangladeshi & Cambodian households to access modern eCook solutions which simultaneously offset greenhouse gas emissions. Through ATEC’s patented technology, each customer will be able to start using our life-changing products with no upfront costs or risks, then pay it off over time for just $10/month as they improve their lives and income.
- 10 Lenders
Committed
- 30 months
Loan Period
- 4%
Interest Rate
- BACKGROUND
Loan summary
Since it launched the eCook unit in 2020, ATEC’s sales of the unit have undergone rapid growth. Because ATEC* uses the paygo payments system, households have 30 months to pay for the unit after ATEC* supplies and installs it. ATEC* orders and supplies stock upfront and uses local teams to install and support households to use the product. These costs must be met upfront with working capital. Revenue then flows back over 30 month terms as households use and pay for the product. In addition, the IoT data on the stoves are then converted into carbon credits for sale internationally which can then fund future growth.
This crowd loan will contribute part of the working capital ATEC* needs in the short term to meet current and projected sales growth in Bangladesh & Cambodia. Through this validation of the product in these markets, ATEC* sees the potential to take this product to markets across Asia & Africa – solving clean cooking and climate change at the same time.
Borrower's mission
ATEC* sells 2 paygo-enabled clean cooking products – biogas digesters that produce organic gas for cooking and the eCook electric stove top units. Biogas is an ideal solution for the 20% of households with livestock while eCook units appeal to any households that want to replace wood fire cooking. ATEC* has now supported over 10,000 people access clean cooking in both countries and has a strong track record in paygo payments management for the last 3 years.
Local employment is also created because ATEC* uses in-country teams of locals to install and support the products. As demand for its products has rapidly accelerated, ATEC* has worked with suppliers to enable more rapid fulfilment of orders. This requires substantial upfront working capital so that suppliers can be paid before sales revenue is fully realised. The model has reached stability and ATEC* intends to grow its establish markets and invest in opening new markets where clean cooking is needed and in demand.
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
For more than 8 years, Red Hat Impact has helped impact enterprises by raising capital and providing other kinds of business and strategy support. We have raised more than $3M from our network of impact investors, and loaned this capital to support 30 enterprises. We use a crowd-lending model to raise loan capital. As of May 2024, we maintain a 98% success rate on loan repayment. We establish close working relationships with all of the impact enterprises we raise debt capital for, and co-manage risks with them during the loan term.
- IMPACT
Impacts and how they are measured
This loan will help ATEC* to increase its established social and environmental impacts by supporting increased sales and distributions of its products. Clean cooking protects people’s health by improving air quality in and around the home and it protects the environment by conserving forest wood and reducing greenhouse gas emissions.
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