, NAIROBI, Kenya, Dec 3 – M-KOPA Solar, the pay-as-you-go energy provider to off-grid homes, has announced the closing of a Sh1.9 billion financing round led by Generation Investment Management LLP.
The new investment from Generation and others will be used to further expand the company’s management team, product range and international operations.
The financing includes new investments by Virgin Group Founder Richard Branson and Steve Case founder of AOL as well as reinvestment by existing shareholders.
The company is on track to reach its initial target of one million homes in East Africa by end 2017.
In just three years since commercial launch, M-KOPA has connected more than 280,000 homes in Kenya, Tanzania, and Uganda to solar power and is adding over 500 homes each day.
“We’re very pleased to have the world’s leading sustainability investors and entrepreneurs backing us at M-KOPA. We’re proving that solar power for the off-grid world will be transformative for customers good for the planet and profitable for investors,” said Jesse Moore, CEO and Co-Founder, M-KOPA.
M-KOPA makes its solar home systems affordable to low-income households on a pay-as-you-go installment plan.
Customers pay a deposit of Sh3, 065 followed by 365 daily mobile money payments of Sh50 or less than they would normally spend on kerosene fuel for lighting.
After completing the payment plan, customers own their systems and can also upgrade for more power.