Frontier Markets (FM) is a last-mile sales and distribution company that offers clean energy products and superior after-sales service to low-income, base of the pyramid (BOP) households in rural India. FM targets consumers who have limited access to electricity and clean water, who reside in rural and semi-urban settings, and who are considered low-income. These consumers are typically agricultural and dairy farmers, laborers, and microfinance clients. FM builds service centers, partners with local channels to gain in-depth access to target households, and creates village-level branded franchises that sell clean energy products with ongoing customer service to BOP families. FM differentiates itself by providing after-sales servicing and by maintaining an ongoing relationship with customers to develop trust within the community. FM has closed on US$150,000 of funding in the form of compulsorily convertible debentures of which IIX assisted in bringing US$75,000. This capital will enable FM to impact over 100,000 families by providing them with safe, clean and economic energy products to their rural consumer base in India, allowing them to save up to US$100 annually on energy costs.
East Bali Cashews
East Bali Cashews (EBC) is the first large scale cashew processing facility in Bali using sustainable eco-friendly practices to process unshelled cashews, package and sell them to domestic and international markets. EBC is operating in one of the poorest and most arid areas in Bali where villages have an average income of US$2 per day. Through its operations, it has provided over 200 people, majority of whom are women, with employment and income opportunities. With the assistance of IIX and KKR team, who jointly worked on creating investor documents for EBC and providing investment mentoring, the enterprise recently closed its investment round with US$900k in debt and equity. The proceeds would be used to build a second processing facility, purchase new machines and hire 150 new workers. IIX’s sister organization, Shujog, also created an Impact Framework for EBC which estimates that this investment will result in a measurable social impact of $560,000 per year, primarily from the increased income and improved health of the workers and their families.