M-KOPA, the African asset financing platform that provides underbanked customers with access to "productive assets" through digital micropayments, has raised over $250 million in new funding.
M-KOPA's business model revolves around financing customers' purchase of products and services, such as smartphones and solar power systems, through micro-instalments, enabling individuals to build their credit history over time.
The new funding will enable M-KOPA to expand its customer base, particularly focusing on driving women's financial inclusion. The company aims to double its 3-million-strong customer base in existing markets and close the gender gap by reaching over 60% female consumers.
Last year, M-KOPA claimed to have provided over $600 million in cumulative credit for its underbanked customers via a network of over 10,000 agents. Providing over $1 billion in cumulative credit for underbanked customers in Africa.
With a proven track record in East and West Africa, M-KOPA is now gearing up to expand its operations to South Africa and pilot electric mobility initiatives in Nairobi.
In a statement shared with Techloy, the company disclosed that the capital infusion includes $55 million in equity and over $200 million in debt, demonstrating the company's strong fundamentals and impressive performance.
Since its inception in 2011, M-KOPA has raised a total of $245 million in equity funding, with the recent funding round led by Japanese-based trading house Sumitomo Corporation, which contributed $36.5 million. Other participants in the equity round include Blue Haven Initiative, Lightrock, Broadscale Group, and Latitude.