M-KOPA Solar has announced that it has closed its fourth round of investment through a US$12.45 million equity and debt deal, led by LGT Venture Philanthropy. The investment will be used to expand the company’s product range, grow its operating base in East Africa and license its technology to other markets.
Lead investor LGT Venture Philanthropy has backed M-KOPA since 2011 and is making its biggest investment yet in the fourth round, which also includes reinvestments from Lundin Foundation and Treehouse Investments and a new investment from Blue Haven Initiative.
“Our investors see innovation and scale in what M-KOPA does. And we see a massive unmet market opportunity to provide millions of off-grid households with affordable, renewable energy. We are just getting started in terms of the scale and impact of what we will achieve,” said Jesse Moore, Managing Director and Co-Founder M-KOPA Solar.
In less than 2.5 years since launch, M-KOPA Solar has installed over 150,000 residential solar systems in Kenya, Uganda and Tanzania, and is now connecting over 500 new homes each day. The company plans to further expand its distribution and introduce new products to reach an even larger customer base.
Oliver Karius, a partner at LGT Venture Philanthropy, said M-KOPA Solar has proven to be a market leader in the growing pay-as-you-go energy industry.
“We have also seen first-hand what positive impacts their products have on customers lives – making low-income households wealthier and healthier,” said Karius.
This deal follows the successful US$20 million (Sh1.8 billion) third round funding closed in December 2013 – which featured a working capital debt facility, led by the Commercial Bank of Africa.
Last month, M-KOPA Solar was awarded The Zayeed Future Awards energy prize, alongside a Sh133 million prize. Moore said the money would go towards M-KOPA University program which will train technical and business skills developments, sales, agents and partners.