- DOB Equity, a family-backed impact investment firm operating in East Africa, has announced a strategic shift in its investment approach, marked by its recent backing of Spouts International, a Ugandan company specialising in ceramic water filters.
- New CEO Karen Serem Waithaka leads the firm’s focus on sustainable food systems, renewable energy, and water sanitation.
- Spouts has distributed nearly 300,000 ceramic water filters, benefiting two million people and cutting over 1.5 million tons of carbon emissions.
- The shift follows challenges with previous portfolio companies, including Sendy and Copia.
Founded in 2014 by Kathy Ku and John Kye, Spouts International produces Purifaaya-branded filters, which offer a safe and cost-effective alternative to traditional methods of boiling water. By reducing reliance on firewood and charcoal, the filters also tackle critical environmental issues like indoor air pollution, deforestation, and carbon emissions.
To date, Spouts has distributed nearly 300,000 units, positively impacting an estimated two million lives while generating significant carbon credit revenues.
This investment marks a milestone for DOB Equity, which is undergoing a strategic shift under CEO Karen Serem Waithaka, appointed in 2024. Waithaka’s leadership focuses on addressing East Africa’s infrastructure and climate challenges through investments in sustainable food systems, renewable energy, and water sanitation services.
“We are committed to providing patient capital to businesses that not only grow sustainably but also address the region's pressing needs,” Waithaka explained.
The move comes after a period of introspection for DOB Equity. Previously led by Co-CEOs Saskia van der Mast and Hayo Afman, the firm adopted a diversified approach, investing in over 30 companies across various sectors.
However, setbacks with logistics startup Sendy and e-commerce platform Copia highlighted the risks inherent in emerging market investments, prompting a reevaluation of its portfolio strategy.
With less than 25% of East Africa’s population having access to reliable safe drinking water, the investment in Spouts aligns with DOB Equity’s ‘Water’ pillar. Beyond providing clean water, Spouts contributes to environmental sustainability and economic resilience.
Daniel Yin, Spouts’ CEO, expressed optimism about the partnership. “This investment allows us to scale our production and distribution networks, reaching even more communities with sustainable water solutions,” he said.
DOB Equity’s realignment reflects a broader trend among impact investors prioritising solutions to Africa’s most critical challenges. As the firm continues to implement its revised strategy, its progress will be closely watched by stakeholders in the impact investment ecosystem.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.