IGNIA Fund I Invests MX$27.0 Million in Aqua, a Supplier of Purified Water Direct to Low Income Homes
MONTERREY, Mexico, May 26, 2011 /PRNewswire/ — IGNIA Fund I, LP, the first impact investing fund in Latin America, announced today that it has invested MX$27.0 million (US$2.4 million) in Distribuidora Mexicana de Agua Purificada en Red S.A.P.I. de C.V. (“Aqua”), an innovative business that delivers clean, purified water directly to its low-income clients’ homes utilizing its wholly owned water grid.
“Aqua’s pre-installed water grid technology enables it to deliver an essential good to a large and growing market,” said Alvaro Rodriguez Arregui, co-founder and Managing Partner of IGNIA. “Aqua’s business model is addressing low income individuals’ need for water at an affordable price and conveniently delivered.”
Clean drinking water is a basic good that is materially associated with an individual’s health and development. However, despite its necessity, accessibility is neither universal nor consistent, and product quality is frequently below drinking standards, especially in low income areas. Purified water for human consumption, particularly in low income areas, is in high demand; Mexico has one of the largest per capita levels of consumption of privately purified water, and has been ranked as the top global consumer over the past five years. Aqua was founded in 2007 in an effort to address this opportunity to increase accessibility to purified water affordably and without the detrimental impact to the environment that current market practices cause. Aqua, now present in 11 states across Mexico, has established itself by installing its water delivery system in the new housing projects of some of Mexico’s most prominent housing developers.
Funding from IGNIA will support Aqua’s rapid expansion of food-grade quality water grids and allow for the provision of service to significantly more customers. Aqua will also use proceeds from the investment round for research and development purposes.
“We are excited to work with the Aqua team as they increase the availability of a vital good used in the daily lives of the population in an innovative, affordable and convenient way” said Michael Chu, co-founder and Managing Director of IGNIA. “The need and market for clean water not only offer Aqua a significant market opportunity, but also provide a means to generate immediate and substantial social impact to its clients”
IGNIA Fund I, LP is an impact investing venture capital fund that invests in high growth businesses that serve the base of the pyramid in Mexico and other regions of Latin America. By providing effective responses to the enormously underserved needs of the low income population, IGNIA empowers entrepreneurship and generates social impact while creating attractive financial returns for its investors. Representative current investments include Finestrella, Primedic, Pro-Organico, MexVi and Chiapas Farms. For additional information, visit http://www.ignia.com.mx.
Aqua provides purified water directly to homes through its pre-installed, independent and proprietary thermo-infused food-grade water grids installed in new housing developments. Aqua is based in Mexico City and operates in 11 Mexican states.
SOURCE IGNIA Fund I, LP