Kenyan fintech M-Kopa raises record Sh35bn in debt and equity

Asset and solar finance company M-Kopa has secured Sh35 billion ($255 million) in new debt and equity funding from Standard Bank and Japanese trading house Sumitomo Corporation among others to expand into sub-Saharan Africa.

M-Kopa said Monday the capital infusion includes Sh7.5 billion ($55 million) and Sh27.4 billion ($200 million). This is the highest earning percentage by a Kenyan startup.

Launched in 2011, the M-Kopa financing platform enables under-banked customers to access a wide range of products and services without collateral or guarantor through a flexible payment model.

“As we continue to expand, we remain committed to building a sustainable business and closing economic and digital gender gaps. We are thrilled to have the support of new and existing investors who share our vision and mission,” M-KOPA Solar CEO and Partners founder Jesse Moore said.

The funding round was led by Standard Bank, which provided $200 million in sustainability-related debt financing, while Sumitomo pumped $36.5 million in new equity investments.

M-Cuba said another participant in the fundraising included UK-based investment firm Lightrock.

Nick Riley, Director Corporate Finance Solutions at Standard Bank, said: “M-KOPA has, in a short time, positively impacted many lives by enabling access to energy and smartphone connectivity, which is a vital part of enabling economic empowerment for all. “. .

The company operates in Kenya and has expanded to Uganda, Nigeria and Ghana. It says more than 3 million customers in the region have taken out about 137 billion shillings ($1 billion) in credit to buy things like smartphones, solar energy systems and health insurance.

M-Kopa has raised billions of shillings to expand, including $75 million in March last year.

It has received more than 22 billion shillings from investors in more than 16 rounds since its inception to expand its asset financing business that allows customers to pay for green energy products in instalments.

More off-grid solar startups are heading to rural Kenya and offering pay-as-you-go kits in a race to claim customers who lack reliable access to electricity.

M-Kopa’s competitors include PAYGO asset finance companies such as Solar Panda, D.Light, Greenlight Planet, Aspira, Bboxx, Azuri, Biolite, Daima Energy, Delta Energy Systems Ltd, Kensen, Mobisol, PowerGen, Solargen, Sunking, Suntech, ZilanSolar, Thrivesolar, Ofgen, Strauss Energy, and ORB Energy.

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