Providing access to good quality, affordable products to middle- and low-income consumers in peri-urban and rural areas.
LGT Impact is pleased to announce its latest equity investment in Kenya: Copia. Copia is a last mile distribution business that addresses the poverty penalty* by providing access to a variety of good quality affordable products to middle- and low-income consumers located in peri-urban and rural areas in Kenya in a timely, convenient and cost-efficient way.
Why LGT Impact supports Copia
In Kenya, key sales channels for fast moving consumer goods include supermarkets and traditional retail shops. E-commerce and M-commerce platforms are in their nascent stages, facing operational and logistical challenges. Last mile distribution to peri-urban and rural areas is largely neglected.
Copia is one of the few players offering solutions to address the last mile distribution gap through a process innovation that combines an established network of good quality agents with an efficient dynamic route mapping system. This ensures optimal route profitability while providing convenient access of affordable products to consumers in the peri-urban and rural areas.
Copia’s model and positive social impact
Copia improves the quality of life of rural and peri-urban consumers by providing convenient access to affordable products, allowing them to save time and transportation costs.
Copia’s business model directly benefits customers and agents in the following ways:
- Consumers: convenience, choice and quality is offered to a group of under-served consumers traditionally facing high premiums and low-quality goods
- Agents: Copia agents improve their livelihoods through the additional income from commission on sales and increased footfall from customers to their stores
LGT Impact's engagement
LGT Impact provided an equity investment of USD 4M to scale Copia’s operations through expansion of its agents’ network and working capital to support this growth.
* The poverty panelty describes the phenomenon that poor people tend to pay more to eat, buy, and borrow than the rich.