M-Kopa, an asset financing platform, has secured $250 million in funding to expand its services throughout Sub-Saharan Africa. The funding comprises more than $200 million in sustainability-linked debt financing led by Standard Bank Group. Other lenders involved in the funding round include The International Finance Corporation (IFC), Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder, and Nithio. Additionally, $55 million in equity investment was provided by existing strategic investor Sumitomo Corporation, with a total contribution of $36.5 million. Sumitomo Corporation will collaborate closely with M-Kopa to explore new growth markets and products. The transaction involved the participation of Blue Haven Initiative, Lightrock, Broadscale Group, and Latitude, the sister fund to Local Globe.
This funding round represents one of the largest combined debt and equity raises in Africa’s tech sector, enabling M-Kopa to sustain its rapid growth. The company intends to utilize the new funding to expand its smartphone services, venture into new markets, and broaden its range of financed products. M-Kopa also aims to promote women’s financial inclusion and reduce greenhouse gas emissions in East African markets. These objectives will be achieved through increased smartphone ownership among women and the further development of electric mobility solutions.
Jesse Moore, CEO and Co-founder of M-Kopa, expressed the company’s commitment to creating a positive environmental and social impact by overcoming barriers to digital financial services. M-Kopa has already provided over $1 billion in cumulative credit to more than 3 million customers, generating numerous local job opportunities. Moore emphasized the company’s dedication to building a sustainable business and bridging economic and digital gender gaps. He expressed gratitude for the support of new and existing investors who share M-Kopa’s vision and mission.
M-Kopa’s fintech platform combines digital micropayments with the Internet of Things (IoT) to offer customers access to productive assets. Through its flexible credit model, M-Kopa allows individuals to make a small deposit and gain immediate access to essential items, such as smartphones, electric motorcycles, and solar power systems. Customers can then gradually pay off their purchases through micro-instalments, with the credit integrated into the product via a smart digital connection. M-Kopa has successfully sold over 3 million of these products through a unique direct sales model, which includes a network of more than 10,000 agents.
Initially operating in East Africa, M-Kopa expanded to Nigeria in 2021 and more recently entered the Ghanaian market. The recent funding achievement coincides with the company surpassing 3 million customers and providing over $1 billion in cumulative credit to underbanked individuals in Africa. M-Kopa is rapidly scaling and expects to acquire an additional million customers in the course of 2023.
