NAIROBI, Kenya, May 15 – Solar and financial tech firm M-Kopa has raised Sh34.26 billion ($250 million) from international investors to expand credit financing in the Sub-Saharan region.
The new debt and equity funding was led by the Standard Bank Group, its long-term partner and investor.
The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder, Nithio, among others, also participated in the round.
It will use the funds to grow its smartphone services, expand to new markets, and extend its financed product set.
“At M-KOPA, we are working hard to create a positive environmental and social impact by systematically addressing the barriers to digital financial services” M-Kopa CEO and Co-founder Jesse Moore said.
“We have already unlocked $1bn in cumulative credit to over 3 million customers, and are proud of the thousands of local jobs we’ve created during tough economic times,” Moore added.
“As we continue to scale we remain committed to building a sustainable business and closing economic and digital gender gaps. We are delighted to have the support of new and existing investors who share our vision and mission.”
Through its platform, M-Kopa combines the power of digital micropayments with the Internet-of-Things (IoT) to provide customers with access to productive assets.
In markets where individuals have limited pre-existing financial identities and conventional collateral, it’s flexible credit model allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance.
M-KOPA’s solution embeds credit into the product through a smart digital connection, giving customers ownership instantly, which they can pay off through micro-instalments over time.
The company has sold over 3 million of these products through a unique direct sales model that includes more than 10,000 agents.
“Supporting M-KOPA is in line with our purpose of driving sustainable growth for Africa and her people,” Corporate Financing Solutions at Standard Bank Nick Riley stated.
“Financial inclusion not only enables economic growth, it also accelerates it. M-KOPA has, in a short time, managed to positively impact so many lives by enabling access to power and smartphone connectivity, which are a vital part of enabling the economic empowerment of all.” added Riley.
M-Kopa’s operations started in East Africa before spreading its wings to Nigeria in 2021 and Ghana recently.
“As a strategic investor, we are very excited to accelerate business growth through collaborative efforts in business development,” Sumitomo Corporation Media & Digital Business Unit Senior Managing Executive Officer, General Manager Masaki Nakajima said.
“By leveraging each expertise and resource, we believe this partnership will have a positive impact on both the financial and telecommunications sectors, ultimately enriching the lives of people across the continent.”
