Spark+ fund invests $4m in cooking stove manufacturer
Enabling Qapital (EQ) and Stichting Modern Cooking (SMC) announced the initial investment of the Spark+ Africa Fund. Spark+ Africa Fund, developed with support from the Clean Cooking Alliance, is an impact fund investing in access to clean and modern energy solutions for cooking in frontier markets in Africa.
Spark+, which had its first closing in March, has invested $4 million via a long-term quasi-equity instrument in BURN Manufacturing, a Kenyan manufacturing company that specialises in the design and manufacture of biomass, electric, and LPG cookstoves that save consumers time and money, improve health, reduce harmful pollution, and limit the use of wood and charcoal.
The fund’s investment will enable BURN to meaningfully increase the capacity of its industrial-scale manufacturing facility in Nairobi, and finance the expansion of its business in new markets including Somalia, Ghana, Nigeria, Mozambique, and the Democratic Republic of Congo. The company has ambitious plans to serve 47 million customers over the next seven years.
Spark+ was advised by University of Michigan Law School’s International Transactions Clinic (ITC) supervised by Carl Valenstein, a partner at Morgan Lewis Bockius. BURN was advised by Sidley & Austin.
Peter George, investment director of Spark+ and chairman of SMC, said, “This transaction is the result of a long and fruitful relationship with BURN. We’re incredibly pleased how the BURN team has leveraged a $500,000 start-up grant from the Clean Cooking Alliance in 2013 to become a true leader in its space. This investment also illustrates the role Spark+ intends to play in scaling up growth-stage ventures, and we look forward to supporting BURN as it extends its reach across Africa.”
Xavier Pierluca, investment director of Spark+ and managing partner of EQ, commented, “BURN has demonstrated market-leading innovation capabilities, designing stoves for various fuels and consumer demographics, all while achieving scale in local production of quality products in Africa. We are very excited to engage in a long-term financing relationship with the company to support its growth in new geographies to limit greenhouse gas emissions and deforestation.”
Peter Scott, founder and chief executive officer of BURN, added, “As we embark on the most ambitious growth plans in our company’s history – expanding to new markets across Africa, increasing our production capacities, and launching new product lines – we are grateful to receive this timely investment from Spark+ Africa Fund. This funding will assist us in reaching new heights as the global leader of clean cooking design and manufacturing, and will allow us to continue executing upon our mission of saving lives and forests across the African continent. We are pleased that Spark+ has chosen BURN as their initial investment and we welcome their partnership on our shared journey.”
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