M-KOPA, a solar power provider and digital asset financing platform in Kenya, has announced one of the largest 2023 raises in Africa’s tech ecosystem.
The platform just raised $250 million. This comes after almost a year after it closed a $75 million in equity funding round in March 2022.
In its latest round, Japanese-based trading house Sumitomo Corporation led with $36.5 million. Other investors including Blue Haven Initiative, Lightrock, Broadscale Group, Latitude, all took part in the equity round alongside Sumimoto.
Standard Bank Group, M-KOPA’s strategic partner, facilitated the debt financing round which exceeded $200 million. Other lenders include IFC, Lion’s Head Global Partners, FMO, British International Investment, Mirova SunFunder, and Nithio.
M-KOPAs primary business revolves around helping customers purchase products and services like smartphones, solar power systems, loans, and health insurance. They operate in Kenya, Uganda, Ghana, and Nigeria. M-KOPA’s unique credit model allows individuals to make a small upfront payment for these products and then pay off the remaining amount through affordable installment payments. This not only makes the products more accessible but also helps customers establish a positive credit history over time.
In an interview with Techcrunch, CEO of M-KOPA, Jesse Moore stated that the platform will now focus on electric motorcycles. “We’re very excited about electric mobility and we’re sure that in the next couple of decades, there will be a big switch in ownership where electric motorbikes will scale when there’s financing to go with them,” he said.
