According to TechCabal, the African digital financing company M-KOPA has raised $250 million in debt and equity financing.
Lenders including 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 participated in a $200 million sustainability-linked debt financing initiative led by Standard Bank Group.
Additionally, Sumitomo Corporation, an established strategic partner, supported an additional $55 million in equity investment. Fintech Finance reports that Blue Haven Initiative, Lightrock, Broadscale Group, and Latitude, Local Globe’s sister fund, also took part in the purchase.
According to the platform, it will utilize the funds to increase the number of underbanked customers it serves throughout Sub-Saharan Africa.This includes intentions, according to Fintech Finance, to use the fresh capital to expand its smartphone services, take its business model to other markets, and increase the range of financed products.
“At M-KOPA, we are working hard to create a positive environmental and social impact by systematically addressing the barriers to digital financial services. We 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 CEO and co-founder Jesse Moore said.
“As we continue to scale we remain committed to building a sustainable business and closing economic and digital gender gaps. We are delighted to have the support of new and existing investors who share our vision and mission.”
M-KOPA first started operations in East Africa and then expanded to Nigeria, Africa’s largest economy, and Ghana, the second-largest economy in West Africa.
“From 2020 to 2022, M-KOPA recorded a compound annual growth rate of 85 percent in new customer acquisition and was recently recognized as one of Africa’s Fastest-Growing Top 100 companies by the Financial Times for two consecutive years, in 2022 and 2023,” according to Business Day.
The fintech company has over 3 million customers and has provided a cumulative credit to underbanked customers in Africa amounting to $1 billion.