DOB Equity, a Dutch impact investment firm, has made a new investment in Irrisol Engineering, an IAP-supported business providing solar-powered water systems to rural and peri-urban communities in Uganda. The investment amount has not been disclosed. It will support Irrisol’s expansion into new districts beyond its current areas of operation.

 The deal marks a milestone IAP was designed to help create: an early-stage inclusive business moving from catalytic grant funding into commercial investment.

Crossing the Missing Middle

Companies like Irrisol often fall into what’s known as the “missing middle”— too large for microfinance, but too small and unproven to attract impact investors or commercial banks on their own. Globally, businesses in this gap face an estimated $930 billion financing shortfall, even when their models are commercially sound and reaching underserved markets at scale.

 IAP exists to close that gap. Through catalytic grant funding paired with hands-on technical assistance — from financial management to investment readiness — IAP helps inclusive businesses build the track record and operational systems investors look for, de-risking them to the point where commercial capital is willing to engage. Irrisol’s journey from IAP grantee to DOB Equity investee is exactly that model in practice.

 In addition to providing a grant of EUR 162,665, IAP delivered comprehensive technical assistance to enhance the company’s operational capacity and attractiveness to investors. This support covered investment readiness and matchmaking activities, including financial modelling, validation of business assumptions, pitch deck preparation, and review of investment term sheets. Further assistance strengthened business development and impact management through sales and marketing strategy development, ESMP preparation for eight new water systems in Kasese, and improvements to monitoring, reporting, learning, and data quality systems.

About Irrisol Engineering

Uganda’s national water utility primarily serves urban and peri-urban areas, leaving millions of rural households without reliable access to safe water. Founded by Joash Bwambale in 2017, Irrisol addresses this gap by designing and operating solar-powered water mini-grids and household connections, billing customers through a consumption-based, mobile-money pay-as-you-go model — treating water as a commercial utility service rather than a one-off infrastructure project. Since 2017, Irrisol has installed 14 community mini-grids and over 330 household systems, reaching more than 410,000 people with 123 million litres of clean water. It is a profitable business, generating $790,000 in revenue in 2024. Serving low-income communities is not a mission alongside commercial operations—it is what makes the business work.

The Investment

The new capital will help Irrisol strengthen its operations and extend its water network to new communities across Uganda. Bwambale said the investment reflects a broader case for treating water access as a commercial, not just humanitarian challenge:

“Access to reliable water should not depend on where someone lives or how much they earn. Irrisol’s journey has been about proving that sustainable, financially viable rural water systems are possible.”

For DOB Equity, the deal fits a strategy of backing locally led, commercially viable businesses with measurable development impact.

Cikü Mugambi, Investment Director at DOB Equity, said:

 “Joash is exactly the type of founder we back: a local entrepreneur solving a problem he lived himself. He’s paired water mini-grids and standalone systems embedded in rural communities with pay-as-you-go plans that make clean water genuinely accessible.”

 

Looking Ahead

With DOB Equity’s backing, Irrisol plans to extend its model to new regions across Uganda in the coming years. For IAP, the investment is also a proof point for the broader model: that catalytic grants and technical assistance, targeted at the missing middle, can help inclusive businesses become investable — and that commercial investors are willing to follow once they do.

Irrisol Engineering has been supported by Innovations Against Poverty (IAP), a challenge fund that provides grants and technical assistance to inclusive businesses.

The Innovations Against Poverty (IAP) programme has completed its first call for proposals in Bangladesh under Round 3, selecting two inclusive businesses for co-financing and technical assistance: iFarmer and Tetra.

The call attracted 92 applications from companies across the country, reflecting strong demand for catalytic finance among Bangladeshi businesses working with low-income communities. After screening, evaluation, and a competitive pitching round, ten companies advanced to due diligence. Two were ultimately contracted.

The contracted companies

iFarmer

Agriculture employs over 40 per cent of Bangladesh’s workforce; yet a significant proportion of smallholder farmers lack access to essential services required for farming which includes affordable credit, quality agri-inputs, reliable market access and timely information. This often compels farmers to rely on informal lenders, counterfeit products, biased information from local retailers and uncertain payment processes for their produce.

iFarmer addresses this by facilitating convenient financial services, necessary agri-inputs, advisory support and improved market access. Farmers are served through the iFarmer Centers spread across 42 districts of the country, where farmers can avail in-person services from iFarmer. Apart from that, iFarmer also keeps farmers engaged with digital services through weather alert systems and information on best agricultural practices. Since 2019, iFarmer has served over 307,700 farmers – among whom 46 per cent are women.

Under the IAP partnership, iFarmer will receive EUR 135,996 to scale its model. The company is targeting to serve 10,000 women farmers in 12 different districts with their required farming essentials. This will result in formal financial inclusion of women farmers, increased productivity from sustainable farming practices, reduced production costs and enable women farmers to make farming decisions independently. IAP will provide technical assistance to iFarmer including a GESI consultant, GESI framework development, and capacity-building on climate assessment.

Tetra

Rural water infrastructure in Bangladesh regularly fails, leaving climate-vulnerable households without reliable access to safe water. The challenge is particularly acute in coastal areas, where rising salinity has made safe drinking water increasingly scarce.

Tetra builds and operates decentralised water treatment systems as community businesses, with women trained as micro-entrepreneurs running the plants. IoT-enabled water ATMs and One Stop Service Centres (OSSC) keep the systems running reliably, integrating low-income women into the value chain as service operators rather than passive beneficiaries.

What we learnt

The Bangladesh call showed that the full IAP Challenge Fund cycle can be delivered in a more streamlined way, completed in four months rather than the usual six and without compromising core quality. Strong outreach and structured ecosystem engagement reached 1,295 stakeholders, 608 registrations, and 92 complete applications. Webinars and one-on-one guidance helped applicants navigate proposal development and compliance.

The compressed timeline did shape the experience at every stage. Some promising companies could not finalise their applications in time, and others submitted underdeveloped proposals despite strong underlying business cases. Due diligence on ten companies within roughly eighteen days was a heavy lift for a small team. The experience underlines the value of allowing sufficient time at each stage of the process, so that companies can put forward their strongest case throughout.

Looking ahead

The call has given IAP a strong starting point in Bangladesh: two companies with credible inclusive business models, a clearer view of what local applicants need from the process, and a network of engaged businesses to build on in future rounds.

IAP Backs 14 Businesses Targeting 3.2 Million People

€2.27 million in IAP grants for businesses across Ethiopia, Uganda and Zambia 

Harry Malichi, CEO/Co-Founder of Wuchi Wami Limited and Emmanuel Phiri, Programme Manager at IAP

Innovations Against Poverty (IAP) has signed contracts with 14 inclusive businesses projected to reach 3.2 million people living in poverty (PLIP) by the end of 2026. The businesses will receive €2.27 million in IAP grants matched by €4.21 million in company co-investment—a 1:1.85 leverage ratio. 

The announcement follows an intensive nine-month selection process that began in November 2024 when IAP opened applications for its third funding round. The application underwent multiples stages from evaluation to due diligence, pitching and contract negotiations, with 14 businesses selected based on commercial viability, proven inclusive business models, innovation and readiness to scale their impact. 

Who Was Selected 

The 14 selected businesses span diverse sectors and business models: 

Ethiopia: 

• Enrich Agro Industry produces affordable, pre-cooked, fortified cereal drinks ideal for urban low-income consumers seeking instant nutritious options. 
• Bere Sericulture Production sources cocoons from women smallholder out-growers to produce high-quality silk thread and transform it into 100% silk finished products. 
• Center for Applied Manufacturing Services and Engineering delivers eco-friendly agricultural mechanisation, cold storage, and market linkages to smallholder farmers through a youth-driven franchise model. 
• Mela For Her produce and distributes affordable reusable menstrual products to underserved women and girls through women-to-women distribution networks. 
• Theday Agro Industry produces affordable, additive-free strawberry jam and fresh juices by sourcing fresh fruits from smallholder farmers. 

Uganda: 

• Nutrinova establishes a scalable poultry hub model and out-grower scheme that lifts smallholder farmers into commercial agriculture through integrated value chain management. 
• Irrisol Engineering scales an integrated water utility model combining solar-powered infrastructure with pay-as-you-go payment systems to enable universal access to clean water in rural areas. 
• Eco Brixs transforms plastic waste into valuable construction materials while creating green jobs and fostering a circular economy. 
• Kawacom operates a premium organic value chain transformation model that builds capacity of smallholder farmers to become EU-certified organic sesame producers with direct access to high-value international markets. 
• Bioconvision upcycles invasive water hyacinth and food waste into high-yield livestock feed and organic fertiliser, providing farmers with a stable, locally sourced alternative to volatile imports. 

Zambia: 

• Lamish Trading creates an integrated agricultural value chain through input financing, training, and guaranteed output markets for women and youth smallholder farmers. 
• Wuchi Wami strengthens an inclusive honey value chain through input financing, training, and guaranteed markets that enable smallholder beekeepers to access quality inputs and premium prices. 
• Fanaka Technologies provides bundled financial services including micro-insurance, credit, training, and digital finance to underserved women and youth-led SMEs, creating credit histories and onboarding them into the formal financial system. 
• Mima Sanitation Services provides market-led pit latrine emptying services to low-income households in peri-urban areas, bringing public health safety and sustainable sanitation solutions. 

Projected impact 

Beyond these numbers, the businesses aim to create transformative change for participating communities. Smallholder farmers will gain reliable market access and fair prices, transitioning from subsistence to commercial agriculture. Women will earn independent incomes through distribution networks and home-based enterprises. Low-income households will access essential services—clean water, sanitation, nutritious food, and financial products—previously unavailable in their communities. Through training, financing, and market linkages, these businesses integrate people living in poverty into sustainable value chains where they can build assets, develop skills, and strengthen their economic resilience. 

Beyond Funding 

IAP’s support extends beyond financial investment. During the 12–18-month implementation period, businesses receive technical assistance tailored to their specific needs. In addition, all 14 companies will receive investment readiness support through our partner, Inclusive Business Partners, and the IAP investment officer, who together will prepare them for future commercial capital and connect them to IAP’s network of local and regional investors. Six of the businesses will also receive business development support from BopInc, which will provide specialised assistance tailored to their inclusive business models.  Each grantee will also be matched with an investor mentor for strategic guidance.  

Growing the Portfolio 

Bangladesh joined the programme in August 2025. Having received 94 applications, IAP aims to select 3-4 companies to support by year-end, expanding IAP’s geographic reach to five countries. 

Beyond the Checklist:

Why Due Diligence Drives Real Impact

Redefining Due Diligence 

When you think about due diligence, what comes to mind? Perhaps endless document reviews, financial audits, or compliance checklists—the standard procedures investors use to verify claims before making decisions. But IAP’s due diligence goes beyond ticking boxes or validating spreadsheets. It’s about discovering authentic impact, building business capacity, and establishing partnerships that transform both enterprises and the communities they serve.  

Where Impact Gets Real: Beyond the Paperwork 

Understanding true inclusiveness requires hearing directly from People Living in Poverty (PLIP) about how businesses integrate them into their operations. Direct engagement uncovers impact that no application could adequately capture. When our teams speak with customers, suppliers, and community members, we discover the real transformation happening on the ground—or sometimes, the gaps between promises and reality. 

In Ethiopia, a farmer shared how one company’s service transformed his family’s life:

“Thanks to this service, my kids are now regularly attending classes. Before, my kids and my wife had to spend hours shelling maize, which took a lot of time and significantly disrupted their school schedule. Now, with the threshing service, they have more time for their education and other important activities.” 

Another woman described new income generating opportunities: “This company gave us a home-based business that fits perfectly into our daily lives, allowing us to make use of castor leaves that have been abundant but unused for decades.” 

These conversations validate whether businesses truly integrate PLIP into their value chains—the core principle that defines authentic inclusive enterprises. Without these direct voices, we cannot verify if companies are genuinely inclusive or simply claiming to be. 

Turning Scrutiny into Strength 

Our deeper conversations with business leaders uncover a welcome side effect: the due diligence process created space for companies to identify opportunities for strengthening their operational systems. The rigorous evaluation provided a framework for businesses to assess and improve their own governance and procedural foundations. “The IAP process enabled us to identify our weaknesses and strengths, and how we can better improve as a firm in governance, systems and procedures,” reflected one company CEO from Zambia. “The exposure was excellent for our growth and for us to be investor ready.” 

Another business director from Uganda explained:

“The due diligence process helped us put systems in place that we used to ignore since our company was still young, like having proper staff contribution systems and other elements that seemed less relevant at our current stage of growth.” 

Even applicants that did not pass the due diligence found unexpected value in the process. A founder from Zambian noted: “We were very weak in governance, systems, and procedures based on the due diligence parameters. Interacting with the IAP team was eye opening, and we promise to work on weaknesses to be able to participate in future challenge funds.” 

Building Trust Through Transparency 

Due diligence deepens the relationship with businesses, moving beyond initial applications to establish meaningful partnerships throughout the IAP programme and beyond. By understanding specific needs in governance, financial management, and operational procedures during assessment, we design targeted technical assistance from the programme’s start rather than generic support that may miss the mark. 

This approach transforms the traditional funder-business relationship. Rather than a one-way evaluation process, due diligence becomes an open dialogue where companies share their challenges and aspirations, while the IAP team gains genuine understanding of each enterprise’s context. When funding decisions are made, both sides already know what to expect from the partnership.  

Ensuring Readiness, Enabling Impact 

Due diligence does more than select the right partners: it ensures IAP doesn’t simply fund businesses—we partner with enterprises genuinely ready to transform lives whilst having the capacity to manage that transformation responsibly. By understanding both impact potential and technical assistance needs from the outset, we build the foundation for sustainable growth that benefits businesses, communities, and the broader inclusive business ecosystem. 

Through meaningful assessment and developmental support, due diligence becomes the foundation for lasting change among the 4 billion people at the base of the economic pyramid.