Businesses With Impact: Fenix International, Maker of The Fenix ReadySet Solar Kit

Today, I want to talk about Fenix International, the maker of the Fenix ReadySet Solar Kit. I have travelled internationally and seen firsthand the dire need for a reliable power source by millions of people in third-world countries. At the same time, I have often been surprised to notice how many people live in poverty but still seem to have personal cell phones. They have cell phone reception, but ironically don't always have a way to charge these cell phones at their homes, as they don't have reliable power. Cell phones are not a luxury item to these people; many depend on mobile phones to tap into the global economy.

Mobile phone usage is a great example of the penetrating power of technology around the world, even in the most remote developing regions. In fact, there are more than 600 million "off the grid" mobile subscribers today: people who have cell phones but no consistent electricity source with which to charge them. In order to charge their phones, it's a common practice for a rural third-world cell phone user to walk more than 20 miles to the closest city, where they can access a grid outlet or use a large, dirty diesel generator. "Charge vendors" sometimes haul car batteries back and forth along these routes to provide charges -- for a fee -- to their local communities. It's an inefficient system that relies on fossil fuel power and massive human effort to do what a solar panel could do in a few hours.

San Francisco-based Fenix International has come out with a product that offers a clean, carbon-free solution: the Fenix ReadySet Solar Kit. Essentially a personal renewable energy system that uses solar panels to generate power, this kit offers a viable alternative to common "dirty" fossil fuel sources. It's not just any solar kit, it's a high-quality, well-designed product -- delivered by ex-Apple engineers hailing degrees from MIT, Stanford, Brown and other great schools. It's a real cutting-edge product, with a cutting-edge business model worthy of serious attention from consumers and investors alike.

I had the pleasure of speaking with the CEO of Fenix International, Mike Lin. His innovative and social-minded startup is hoping its renewable energy products will help deliver electricity to the estimated 1.5 billion people who currently live off the grid. Rather than rely on grassroots distribution networks like many of its competitors, Fenix works with large mobile telecoms to provide energy to the millions of customers around the world who lack access to electricity.

One of Fenix International's primary geographic targets is the African continent. Lin says:

"There is so much exciting activity around high tech in Africa, with a real grassroots movement -- especially with mobile phones. The need for powering phones is much greater there, with thousands of people walking miles and miles to charge their cell phones or to use a wired phone."

The ReadySet Solar Kit isn't just about making it easier for individuals to charge their phones. It actually gives regional entrepreneurs the ability to start their own small businesses using the ReadySet Kit, where they can in turn charge phones for their entire communities. "Mobile phones are used for much more than just phone calls in these areas of the world," Lin says. "They are essential tools of productivity in business, allowing for activities such as mobile banking, price checking and person-to-person banking using mobile payments." 

Currently, Fenix is working with MTN Group (Africa's largest mobile telecom, with 165 million subscribers) in Uganda and Rwanda to co-brand and sell the ReadySet Kit through their massive rural distribution network of independently owned franchisees. Fenix has already distributed more than 2,000 kits in Uganda, providing much needed charges to thousands of people each week. Uganda and Rwanda are only two of the 21 countries MTN Group operates in, so there's potential to further expand throughout Africa. Together with MTN, Fenix has demonstrated that by simply providing access to energy and helping subscribers more easily charge their mobile phones, MTN can increase their revenue 10-14 percent and, at the same time, empower local entrepreneurs to become micro-utilities in their communities. (Hint hint, other major providers!)

Inspired by how "mobile banking" revolutionized financial independence, Fenix believes that "mobile energy" is the next exciting frontier that will power laptops, tablets and even water purifiers and vaccine refrigerators off-grid.

I asked Mike to speak about his experience of getting this startup going, and keeping it going.

"Brian Warshawsky, our COO, and I worked together at Apple. I knew that if I was going to launch this startup, the team needed to trust AND like one another. The profile of the person who has joined Fenix is someone who is deeply passionate about doing something good in the world. We have a growing point of view of looking beyond simple philanthropy. We are using business as a vehicle for doing good."

Over the next five years, Fenix would like to sell at least a million units, expand into other areas of the world, and see "applications" for their ReadyStart kit be produced. They intentionally designed the kit so it that its power can be imparted to devices with a USB cable or a 12-volt adaptor, which means that third parties can easily design compatible applications. It's "open-source" hardware, which I personally really appreciate.

They have raised a series A round of funding and are currently looking to raise a $10 million round series B. They are also in the middle of a so far very successful Kickstarter campaign, which I encourage you to check out, because you can actually buy a ReadySet Kit for yourself by donating to this very worthy cause. It's not just for citizens of developing countries; you can actually use it anywhere in the world as a reliable alternative and clean power source. It's also not a bad idea for your emergency kit or boat/RV. Or, you have the option of funding a kit for someone in need. Well, what are you still reading this for? Go learn more about Fenix, and check out the Kickstarter campaign!

Thanks for reading, and check back here again soon for another spotlight Business With Impact.

This peice if part of my Businesses With Impact series. I'm highlighting companies that fit within what I consider to be a scope of "significant social impact," meaning that they exhibit a high degree of operational awareness of corporate responsibility, social capital investments and philanthropy. While my research is not qualitative per se, I am confident about featuring companies doing inspiring things to change the world in real ways. If you have a suggestion for a company or individual to feature, please 

iChange -- The Charitable and Social Potential of iPads

While personal computing used to be an elite technology for the upper middle class, that day is long, and fortunately, gone. More and more, I see examples of how technology is actually making a difference in the lives of people who 10 years ago possibly had never touched a computer, let alone an iPad.

When I first saw the iPad I knew it was a game changer. Even those who didn't see it as revolutionary, still realized it was unlike any product they had seen before. When I actually used an iPad for the first time, I realized that there was an opportunity for businesses to use this revolutionary tool to help their bottom lines. For businesses with a social impact focus, I also knew the iPad would be an invaluable tool, and was excited to see this develop.

In little over two years since the iPad's initial release on April 3, 2010, the explosion of uses for this device has amazed anyone who has paid attention. The nonprofit and social impact sectors have benefitted handsomely. Nonprofit and charity organizations are taking advantage of the ability to optimize their websites for the iPad platform, as well as to create native iPad apps to further support their causes.Ammado, a donation engine, is a great example of this. They have created HTML/CSS iPad-optimized widgets that are very slick and easy to integrate into an existing website or blog. Ammado's technology allows nonprofits to access a quick and easy solution to have a giving platform set up and running on a host site within minutes.

Aside from obvious fundraising uses like this, native apps have been developed for real functional use. Apps for petitions, field reports, trainings, rally signing and more have turned the iPad into a powerhouse tool to mobilize groups like never before. I also hope that iPads will find their way more and more into classrooms around the world, and inspire creativity and change. The App 'NonProfit' acts as a great directory, and keeps you up to date with the nonprofit world.

Well-established programs like One Laptop Per Child have been very successful in bringing technology into classrooms and getting computers in the hands of children who otherwise would have no access. While I certainly praise these programs, and think they have laid the groundwork for future ones, it seems likely that programs would benefit by getting iPads -- not laptops -- into classrooms. The iPad's rich, full experience offers the same benefits as laptops in many ways, but the iPad allows teachers and students to collaborate and create in ways they simply cannot on a basic laptop. The ability to create and download app's also presents itself as a significant benefit. The cost of the iPad would have to come down in order for this to be feasible -- or program budgets would have to go up, which is not likely. But in time, the iPad price will not be an issue. Apple also is famous for its technology grants, and educational discounts, so this seems even more likely for that reason as well.

Aside from its ability to support good causes, you can easily search the web and find stories about how the iPad or iPhone have changed or even saved lives. Filmmaker Dan Woolley, caught in the 2010 earthquake in Haiti, actually used his iPhone to stay alive for 65 hours while he waited for rescue. He used his phone to take and send photos of his surroundings and a First Aid app he had installed to explain how to fashion a bandage and tourniquet for his own leg. (Read story)

I love stories about how technology is making an actual positive impact on people's lives, and I look forward to seeing these "miracle devices" continue to change the world in the months and years ahead. I'm ashamed to say that as of today, I don't own an iPad and have instead been monopolizing my family and friends' devices. Maybe it's finally time to break down and buy one. As a tip, you can get great deals on previous generation iPads from Apple's refurbished store.

Leveraging Technology to Feed India's Hungry Children

What do chocolate pumps have to do with solving world hunger? Quite a bit, if you ask the Akshaya Patra Foundation. The Balgdon Pump, initially designed to pump liquid chocolate, helps complete the herculean task of preparing fresh nutritious meals for over 1.3 million impoverished children daily in government-run schools across ten Indian states. For many children, this is their only complete meal of the day, which gives them an incentive to come to school, stay in school, and focus on learning.

The Akshaya Patra Foundation, a public-private partnership, is the largest NGO-run midday meal program in the world. It utilizes innovative technology, smart engineering and good management to reach and continue to grow its current levels of service delivery and keep costs low. It costs them just $15 to feed each child for an entire academic school year.

Madhu Pandit, a graduate of the premier Indian Institute of Technology in Bombay, founded Akshaya Patra with a group of dedicated social entrepreneurs who were also leaders in the Indian IT, engineering and business communities. This group of individuals recognized the seemingly insurmountable problem of childhood hunger and its effects on access to education, and on India's -- and ultimately the world's -- economic and social development. Fortunately, the founders possessed the engineering skills needed to design equipment and layout for a mechanized kitchen which can efficiently cook nutritious meals for large numbers of children at a low-cost.

Their school meal program started modestly, feeding 1,500 underprivileged children in five government schools in Bangalore. A month after the program began, teachers started to report increased attendance by students, and letters started pouring in from neighboring schools asking to be included. This was a defining moment for Pandit as he realized just what one complete meal a day means to children and their families. He saw this as an important strategic intervention in education that unlocks the vicious and perpetual cycle of poverty.

Technical Innovation in a Commercial Kitchen

While the Balgdon chocolate pump is now far removed from the chocolate industry, its function -- to move very viscous fluid -- remains the same. Akshaya Patra ingeniously uses it to pump the "ganji" (excess water from cooking rice) out of the rice cauldrons, where it is then recycled for use in bio-culture or vehicle washing water. This is not the only piece of innovative technology they have become to be known for.

The hallmark of Akshaya Patra's program is its centralized kitchen facilities, which have been designed and engineered to optimize quality and minimize cost, time and labor. These fully automated kitchens can prepare 185,000 meals in less than five hours by utilizing gravity flow mechanisms to minimize human handling of food, mechanized high-speed cutting of vegetables and conveyor belts for easy transportation. Large stainless steel cauldrons with easy-tilt mechanisms prepare 1,200 liters of lentils in two hours and a specially designed roti-making machine cooks up 40,000 rotis (flat whole wheat bread) in one hour. Steam is used as a source of cooking, which accelerates the cooking process, retains nutrients, and is cost-effective and clean. To date, six of the Akshaya Patra kitchens have received FSMS ISO 22000:2005 certification -- a first of its kind achievement for an NGO.

Total Efficiency from Kitchen to School

After the food leaves the kitchen, the Akshaya Patra meal delivery system involves well-coordinated precision logistics using custom designed vehicles that quickly and safely deliver cooked food to schools according to a strict schedule, with optimal storage and minimal spillage. In an effort to minimize fuel consumption and cost, they have developed route simulation software. A pilot run of this tool reduced the number of routes in the Bangalore South kitchen by 10 percent, and experts estimate that an optimization opportunity of up to 15 percent exists if the tool is implemented across all units. Efficiencies in logistics operations were improved by making use of GPS technology in meal delivery vehicles and automating attendance data collection from the schools using IVRS hand-held devices.

Given the size of Akshaya Patra's operation, a strain exists on the local natural resources. India, having 18 percent of the world's population on 2.4 percent of the world's total area, has experienced environmental degradation such as water shortages, soil exhaustion and erosion, deforestation, and air and water pollution. In a bid to reverse this trend, Akshaya Patra has adopted several environmentally friendly practices. Six of the twenty one kitchen locations use Briquette run boilers, fueled by groundnut husk or rice bran instead of diesel. Rain water is harvested and re-routed into a pond, recharging bore-wells and reducing dependency on corporation water. Smokeless stoves are being piloted in their Bangalore location. A mini-fan, powered by rechargeable batteries and controlled by a regulator, blows air to fan the flames. This has helped to reduce fuel cost by 50 percent.

Despite India's booming economic growth, the country is still home to hundreds of millions of people suffering from the dual tragedies of malnutrition and a lack of education. UNICEF estimates that 57 million Indian children are malnourished, impairing their cognitive and social development. The 2011 Global Hunger Index, a report published by the International Food Policy Research Institute, placed India at 67 out of 81 developing countries in hunger. Unless these serious problems are addressed, large numbers of India's children will remain unhealthy and uneducated. This poses a serious obstacle to India's ability to participate effectively in the world economy. It is estimated that child malnutrition is responsible for 22 percent of the country's burden of disease, affecting productivity, income and consumption. Reduced productivity costs India's economy approximately $2.5 billion annually. With a potential labor and consumer force of one billion people, this can have serious implications for the global economy.

A wholesome mid-day meal, served in schools, helps break the cycle of poverty and helps children to become productive global citizens. India's expanding economy, in this global environment, presents extraordinary opportunities for large numbers of young people, but those who remain uneducated, unskilled and unhealthy will have poor prospects. Akshaya Patra's technology applications benefit humanity by liberating children from hunger and a lack of education. They are investing in a better world by protecting our future. This is a cause I can get behind.

For more information please visit www.foodforeducation.org