M-KOPA, the Kenyan pay-as-you-go energy services for off-grid customers, has raised $75 million in a growth equity round to expand its financial services platform for the underbanked into additional countries beyond its current operations across Kenya, Uganda, Nigeria and Ghana.
The growth capital round was led by Generation Investment Management and Broadscale Group, with participation from new investors including LocalGlobe’s Latitude Fund and HEPCO Capital Management. Existing investors CDC Group and LGT Lightrock also backed the round. M-KOPA’s total equity funding following this infusion totals $190 million.
The fresh capital will also be used to help M-KOPA grow beyond asset financing by scaling other products — health insurance, cash loans, and buy now pay later (BNPL) merchant partnerships.
The new investment will also allow M-KOPA to expand its flexible daily and weekly payments model by scaling financial services products such as health insurance, cash loans, and BNPL merchant partnerships.
Founded by Chad Larson, Jesse Moore, and Nick Hughes in 2011, M-KOPA offers connected financing and digital financial services to underbanked consumers. As of this year, the company has provided $600 million in financing to an estimated 2 million people.
Commenting Jesse Moore, M-KOPA CEO and co-founder, said: “Our innovative model means we have enabled financial empowerment for over two million people already through micro-payments, but there are still millions of people across the continent that are stuck with limited economic options.
“With this funding, we will expand to more markets across Africa and scale to over 10 million customers in the next few years.”
