Circle Gas Partnered with CCA to Assist Fundraising for Growth
Circle Gas distributes clean and convenient pay-as-you-go cooking gas solutions to families in East Africa. Circle Gas addresses the liquid petroleum gas (LPG) affordability gap for consumers by allowing customers to purchase gas in small quantities as they cook via their innovative smart metering paired with mobile payments.
To support Circle Gas’s corporate fundraising to grow the business, the Clean Cooking Alliance’s (CCA) Venture Catalyst program collaborated with Circle Gas to fund and facilitate the hiring of third-party consultants to create and improve its fundraising materials. This work included:
- A review of Circle Gas’s fundraising materials and model; and
- Drafting an equity term sheet that included the legal support necessary for coordinating with management and shareholders.
Having the term sheet ready ahead of discussions with investors gave Circle Gas the legal support necessary for the key terms to be discussed with management and shareholders, which helped to refine the fundraising strategy.
The model preparation was critical because it was anticipated that the Circle Gas financing will require innovative, ‘clean cooking’ financial instruments including results-based financing (RBF) and hybrid debt instruments, which require complex financial analysis by both the company and potential investors/lenders.
In 2021, Circle Gas signed agreements for a grant under the AECF REACT Kenya Results Based Finance Program and for an equity investment from the global conglomerate Marubeni Corporation.
“The Clean Cooking Alliance has provided valuable support to Circle Gas during this crucial stage in our company’s growth.”
– Carey Ngini, Chairperson, Circle Gas