Kidogo Final Presentation

© Sabrina Premji 2013

Our Story

Sadaf Shallwani

Our Team

Brad Rosenberg John McKinley

Our Advisors

Co-Founders & Leadership Management Team

Afzal Habib Sabrina Premji Kenzie Colgan Adam Camenzuli

Michaela Mantel

The Problem

• Limited child-care options in urban slums

– Unsupervised at home or work

– Low quality & unsafe "baby cares"

• Continued "cycle of poverty"

– Child's health/education compromised

– Mothers unable to gain employment

The Opportunity

Our Idea . . .

• New & improved ECD centres

– Build / refurbish high-quality facilities

– Trained caregivers & care standards

• Empower families & change trajectories

– Improved health & education of child

– Unlock employment opportunities

Estimated market size in Kenya>$150M with potential to scale 4X across East Africa

. . . with Potential

Total Available Market

• # of Children (0-5 years) in

Sub-Saharan Africa

Served Available Market

• # of Children in East African1

urban slums

Target Market

• # of Children in Kenya's urban slums

• Estimated market size2 = $150 M+

130 Million

2.5 Million

>650

Thousand

1. East Africa defined as those countries that are part of the EAC: Kenya, Tanzania, Uganda, Rwanda & Burundi 2. Assuming target price = $1 / day / child and 250 working days per calendar year Sources: Homeless International, Africa's Future Africa's Challenge, Index Mundi, Population Reference Bureau, Customer Interviews

Rwanda

Burundi Tanzania

Kenya Uganda Based in:

Nairobi

Region:

East Africa

+Acumen Lean 4 Social Impact Course We've been doing 6 months of customer discovery

Hypotheses: Where we started

Findings: What we learned

Progress: Where we are

Next Steps: Where we are going

Experiments: What we did

Hypotheses: Where we started

Solution (product features)

Problem

Value Proposition

Pain Reliever

Gain Creator

"I'm so relieved" – I have a SAFE place to keep my kids

"I'm so proud" – My kids go to the BEST pre-school in town

"It's affordable" – I can AFFORD to pay for it

Kibera

Partner Org: Care for Kenya

Local Contact: Daleela

Mlolongo

Partner Org: Mother Child in Action

Local Contact: Racheal

Experiments: What we did

Comprehensive benchmarking study

75+ Interviews (experts, customers, etc.)

3+ Site Visits / Focus Groups

Baba Dogo

Partner Org: We Are Watching You

Local Contact: Ramadhan

Findings: What We've Learned

• Significant variance in child care options in slum communities, from

none available (Kibera/Baba Dogo) to poor-quality (Mlolongo)

• There is significant demand from mothers for a safe, affordable and

convenient place to keep their children during the day

• Provision of food is a huge 'value add' in attracting mothers to one

babycare centre over another. Willingness to pay increases (>2x)

• We can partner with local employers and NGOs serving the same

target market (mothers in slums) to build our customer base

• Need to focus on highest value interventions in order to maximize

ECD impact, "pull" customers, and achieve financial sustainability

1

2

3

4

5

Findings: Customer Archetypes "Tell me about yourself"

• Georginah, 26 years old

• Occupation: Washes clothes. Earns US$2.30/day

• Typical Day: Wakes up at 5am; Cooks breakfast and feeds

child; Walks door-to-door to find work; Returns home at 3pm;

Washes her baby and clothes; Cooks supper; Sleeps at 9pm.

Child Care – No Child Care Services

• Children: 1 year old

• Pains: Difficult to work with a child on her back. Child often gets

pneumonia while being carried during the rainy season.

• Dreams: Her child is healthy and happy.

"Tell me about yourself"

• Lucy, 28 years old

• Occupation: Tailor. Earns US$3.50/day

• Typical Day: Wakes up at 4:30am; Cooks breakfast; Feeds and

dresses baby and takes to baby-care centre; Returns at 7pm;

Cooks supper; Washes her baby and clothes; Sleeps at 11pm.

Child Care – Baby Care Centre

• 2 Children: Ages 5 yrs and 1yr

• Uses local baby care: Pays US$0.60/day, no food provided

• Pains: Dirty, congested; Limited play materials; No place to

warm food; Mistreating/shouting at babies

• Dreams: Her children are healthy and happy

1

2

Progress: Where we are now Potential MVP / pilot site identified in partnership with local NGO

• Basic facility renovations and expansion underway (landlord funded)

• Child-friendly retrofit to be completed by Kidogo team

• Must recruit and train first batch of caregivers in ECD essentials

• Gaining support for curriculum development and daily schedules

• Marketing materials (posters, signage, etc.)

Target timeframe: 6 Months (December Opening)

Next Steps: What we plan to do next Launching fundraising campaign (including online / social media presence) to fund pilot

Twitter:

@kidogo_ECD

Facebook:

"Kidogo Early Years"

Website:

www.kidogo.co

http://www.kidogo.co/

Current options for "baby care", where they exist in slum, are low quality: • poor facilities • untrained care-givers • limited access to essential services: food, health care, education

Kidogo ECCs have three major components that make them different: 1) High-quality facilities 2) Well trained care-givers 3) Access to nutritious meals, health care, and educational materials

Poor (BOP) Mothers: • Women (18-55) with young children (0-5) • Live in urban slum dwelling • Have hourly wage factory job or run a small business • Make only a few dollars / day • May or may not already send children to baby care • Limited education/ literacy Major employers: • Local processing factories • Many local employees incl. women w/ children •Looking for CSR ideas to "give back" or "engage community"

Franchisees: In some communities, we will work with existing "baby care centers" owned and operated by local mamas • We will provide facility

upgrade, training and other services

Local NGOs: Work alongside local non-profits serving mothers & children • Market our services,

identify customers and run training programs

Local & intl' universities: Help us build curriculum & train caregivers in exchange for opportunity to conduct research/ train ECD students

Kidogo is a service provider. 1) Provide support to our franchised centres through branding, training & supervision 2) Provide care / education to customers directly in our owned centers

Financial Capital: Required to build new centers or improve existing Human Capital: - Corps of "mama-preneurs" to be owner/operators - Team of professionals to develop curriculum, provide ongoing care-giver support

1) Franchise existing centers Leverage existing centers with est. customer base 2) Build referral system Incentives for parents / CHW

Micro-franchised center: Locally owned/operated with 15-30 children, close to home, home-based care. Mega-centers: Purpose-built, company owned, with >50 children, located near work or market

• Facility upgrades / retrofits • Caregiver training • Meals (ingredients, preparation, delivery) • Overhead support • Curriculum / program development • Health care

Micro-franchised centers: • Franchisees pay Kidogo monthly franchisee fee (or revenue share) • Supplier of key inputs (food, materials, water etc.) Mega-centers: • Mama's pay Kidogo daily or monthly day-care fees directly; OR • Employers pay Kidogo to care for children of their employees (vouchers)

Appendix: Business Model Canvas (I)

Current options for "baby care", where they exist in slum, are low quality: • poor facilities • untrained care-givers • limited access to essential services: food, health care, education

Kidogo ECCs have three major components that make them different: 1) High-quality facilities 2) Well trained care-givers 3) Access to nutritious meals, health care, and educational materials But, value proposition is: • Child safety • Affordability • Status: Beautiful centers that parents aspire to send their children to

Poor (BOP) Mothers: • Women (18-55) with young children (0-5) • Live in urban slum dwelling • Have hourly wage factory job or run a small business • Make only a few dollars / day - unpredictable income • May or may not already send children to baby care • Limited education/ literacy Major employers: • Local processing factories • Many local employees incl. women w/ children • May already or consider offering baby-care services as a benefit to employees • Looking for CSR ideas to "give back" or "engage community"








1) Franchise existing centers Leverage existing centers with est. customer base 2) Partner with local NGOs Work with mothers groups, clinics to market to new mothers & unserved 3) Build referral system Incentives for parents / CHW




Appendix: Business Model Canvas (II)

Current Baby Care options in slum, are low quality: • poor facilities • untrained care-givers • limited access to essential services: food, health, edu.

Kidogo ECCs features make them different: 1) High-quality facilities 2) Well trained care-givers 3) Nutritious meals, health care & education Value proposition is: • Child safety • Affordability • Status: Beautiful centers that parents aspire to (for franchisees) • Increased profitability • Status: "Formal School" affiliation

Poor (BOP) Mothers: • Women (18-55) with young children (0-5) • Live in urban slum dwelling • Have hourly wage factory job or run a small business • Make only a few dollars / day - unpredictable income • May or may not already send children to baby care • Limited education/ literacy Major employers: • Local processing factories • Many local employees incl. women w/ children • May already or consider offering baby-care services as a benefit to employees • Looking for CSR ideas to "give back" or "engage community"












Appendix: Business Model Canvas (III)

Pivot: For the franchising model to

work, we need to be thinking of

franchisees as customers (needs,

economics, values), not just as

partners.


Kidogo ECCs features make them different: 1) High-quality facilities 2) Well trained care-givers 3) Nutritious meals, health care & education Value proposition is: • Child safety • Affordability • Status: Beautiful centers that parents aspire to Value prop. (franchisees): • Increased profitability • Status: "Formal School", affiliation, ECD certificate

Poor (BOP) Mothers: • Women with young children (0-5); live in slums • Have hourly wage factory job or run a small business • Make only a few dollars / day - unpredictable income • May or may not already send children to baby care

Franchisees: Existing "baby care centers" owned and operated by local mamas . We will provide facility upgrades, training, marketing, play materials, and ongoing support

Major employers: • Local processing factories who employ mothers • May already or consider offering baby-care services • Looking for CSR ideas to "give back" to community






1) Franchise existing centers Leverage existing centers with est. customer base

2) Recruit new franchisees Offer franchising package to potential owners

3) Partner with local NGOs Work with comm. groups, o market to new mothers

4) Build referral system Incentives for parents / CHW




Appendix: Business Model Canvas (IV)


Kidogo ECCs features make them different: 1) High-quality facilities 2) Well trained care-givers 3) Nutritious meals, health care & education Value proposition is: • Child safety • Affordability • Status: Beautiful centers that parents aspire to (for franchisees) • Increased profitability • Status: ECD certificate, "Formal School", affiliation

Poor (BOP) Mothers: • Women (18-55) with young children (0-5) • Live in urban slum dwelling • Have hourly wage factory job, no job, or a small biz •Unpredictable income >$4 • May or may not already send children to baby care • Limited education/ literacy Major employers: • Local processing factories • Many female employees • May consider offering baby-care as a benefit • Looking to "give back" or "engage community"

Franchisees: • Young-middle age women • Existing "baby care centers" owner/operators • Serve 15-30 families today • Some are ECD trained



• e.g., Mother Child in Action, Care 4 Kenya

Local & int'l universities: Help us build curriculum & train caregivers in exchange for opportunity to conduct research/ train ECD students • e.g., Aga Khan

University, UofT, Harvard Centre for the Developing Child

Kidogo is a service provider. (1) Provide care / education to customers directly in our owned centers (2) Provide support to franchisees thru facility upgrades, branding, training & supervision



Integrated Community center "Mega-center": Purpose-built, company owned, with 30-50 children, located near work or market partner organization. Micro-franchise: Locally owned/operated with 15-30 children, close to home, home-based care.

• Facility upgrades / retrofits • Caregiver training • Meals (ingredients, preparation, delivery) • Overhead support • Curriculum / program development • Access to health care

Mega-centers: • Mama's pay Kidogo daily or monthly day-care fees directly; OR • Employers pay Kidogo to care for children of their employees (vouchers)

Micro-franchisee fees: • Franchisees pay Kidogo monthly franchisee fee (or revenue share) • Supplier of key inputs (food, materials, water etc.)

Major Pivot: In order to prove

concept, refine economics & build

our brand, the franchising model

will be "shelved" to focus on a

"community centre" pilot.

Appendix: Business Model Canvas (V)

Current Baby Care options in slum, are low quality: • poor facilities • untrained care-givers • limited access to essential services: food, health, education

Kidogo ECCs features make them different: 1) High-quality facilities 2) Well trained caregivers 3) Nutritious meals, health care & education Value proposition is: • Child safety • Affordability • Status: Beautiful centers that parents aspire to send their children to

Poor (BOP) Mothers: • Women (18-55) with young children (0-5) • Live in urban slum dwelling • Have hourly wage factory job, a small business, or no job •Unpredictable income >$4 • Do not currently send children to baby care • Limited education/ literacy Major employers: • Local processing factories • Many female employees • May consider offering baby-care as a benefit • Looking to "give back" or "engage community"



• e.g., Mother Child in Action, Care 4 Kenya

Local & int'l universities: Help us build curriculum & support local trainers in exchange for opportunity to conduct research and student field placements • e.g., Aga Khan

University, University of Toronto, Harvard Centre for the Developing Child

Kidogo is a service provider. (1) Provide care / education to customers directly in our owned centers

Financial Capital: - Required to transform existing facility into a babycare centre Human Capital: - Local ECD professional ("mam-preneur") and team of caregivers

1) Partner with local NGOs Work with mothers groups, clinics to market to both new and unserved mothers 2) Build referral system Incentives for parents

Integrated Community center Purpose-built, company owned, with 30-50 children, located near work / partner organization.

• Facility upgrade / retrofits • Caregiver training • Meals (ingredients, preparation, delivery or outsource) • Overhead support • Curriculum / program development

Company-owned, community-based centers: • Mama's pay Kidogo daily or monthly day-care fees directly; OR • Employers pay Kidogo to care for children of their employees (vouchers)

Appendix: Business Model Canvas (Current)

Appendix: Theory of change

1. Mission

"Improve early childhood health &

education in East Africa's slums"

"Change the trajectory of children in EA slums

through improved Early Childhood care"

2. Big idea

• Operate a network of branded day care centers

built on best-practices in Early Childhood

Development

3. Impact(s)

• Decrease under5 child mortality/ illness

stunting, malnutrition & infection rates

• Improved primary school retention &

performance (Y1, Y3, Y5)

We build "improved" centers • Safer & more stimulating

Mothers bring children daily

• Switch to a Kidogo center

• Start going to a Kidogo center

Caregivers give "better" care

• Ongoing Training in ECD curriculum

• Supervised by Kidogo CHWs

Children are safer & get better

prepared for school

Improved child health & education • Decreased child stunting ...

• Improved primary school ....

4. Behavior Map

Education

Kidogo Final Presentation