M-Kopa Raises $250 Million to Transform African Fintech
M-Kopa, an African fintech company, has secured over $250 million in fresh debt and equity funding to enhance its financial services offering to underserved consumers across Sub-Saharan Africa.
The sustainability-linked debt financing, exceeding $200 million, was led and organized by Standard Bank Group, the largest bank in Africa, with support from The International Finance Corporation (IFC), Lion’s Head Global Partners, FMO, Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder, and Nithio.
The debt financing is designed to support sustainable objectives, with pricing tied to accomplishing environmental and social targets.
Sumitomo Corporation of Japan also supported $55 million in equity investment, contributing $36.5 million to the overall funding. Other participants in the transaction include Blue Haven Initiative, Lightrock, Broadscale Group, and Latitude, the sister fund of Local Globe.
M-Kopa’s credit model enables individuals to make a small deposit and gain immediate access to essential items like smartphones, electric motorcycles, and solar power systems.
The company incorporates credit into the product through a smart digital connection, granting customers instant ownership, which they can repay through micro-installments over time.
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Customers can then progress to digital financial services like loans and health insurance. M-Kopa has sold more than three million of these products through a direct sales approach involving over 10,000 agents.
Initially operating in East Africa, M-Kopa successfully expanded to Nigeria in 2021 and more recently, to Ghana.
Between 2020 and 2022, the company achieved an impressive compound annual growth rate of 85% in new customer acquisition, reaching over three million customers and providing over $1 billion in cumulative credit to underserved customers in Africa. M-Kopa aims to add another million customers throughout 2023.
Source: TechCrunch