M-KOPA Has Secured Over $250M In New Funding

M-KOPA said it closed over $250M in new debt and equity funding to expand its financial services offering to underbanked consumers across Sub-Saharan Africa. This marks one of the most significant debt and equity raises in the African tech sector, enabling M-KOPA to continue its rapid growth.

Over $200M in sustainability-linked debt financing was led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder, and Nithio.

A further $55M in equity investment was backed by existing strategic investor Sumitomo Corporation, which contributes $36.5M to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group, and Latitude, the sister fund to Local Globe, also participated in the transaction.

With this new funding, M-KOPA aims to grow its smartphone services, expand its model to new markets and extend its financed product set. M-KOPA will also use the financing to drive women’s financial inclusion and reduce greenhouse gas emissions in its East African markets by increasing smartphone ownership among women and further developing its electric mobility solutions offering, respectively.

In line with M-KOPA and its partners’ longstanding commitment to creating a positive impact, debt financing is structured to support sustainability-linked goals with pricing linked to achieving environmental and social targets.

Jesse Moore, M-KOPA CEO, and Co-founder, said they are working hard to create a positive environmental and social impact by systematically addressing the barriers to digital financial services. He remarked that they 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.

“M-KOPA is delighted to have the support of new and existing investors who share our vision and mission. As we continue to scale, we remain committed to building a sustainable business and closing economic and digital gender gaps,” he said

Nick Riley, Corporate Financing Solutions at Standard Bank said, “Financial inclusion enables economic growth and 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.”

Masaki Nakajima, Senior Managing Executive Officer, General Manager, Media & Digital Business Unit at Sumitomo Corporation, said: “As a strategic investor, we are very excited to accelerate business growth through collaborative efforts in business development.” “By leveraging each expertise and resource, we believe this partnership will positively impact both the financial and telecommunications sectors, ultimately enriching the lives of people across Africa.”