M-KOPA, a leading pay-as-you-go solar and financial services provider, has recently announced a significant milestone in its mission to empower underbanked consumers across Africa. The company has secured a remarkable $250 million investment led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. This substantial funding will enable M-KOPA to expand its reach, enhance its product offerings, and make a lasting impact on the lives of millions of individuals in underserved communities throughout Africa.

A further $55m in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5m to the total raise and will engage closely with M-KOPA on new growth markets and products.

Addressing Financial Exclusion:

Financial exclusion remains a persistent challenge in many African countries, where a significant portion of the population lacks access to traditional banking services. This limited access restricts individuals' ability to save, invest, and secure loans, hindering economic growth and social development. M-KOPA's pioneering approach aims to bridge this gap by providing affordable and accessible financial services to underbanked consumers, catalyzing positive change in their lives.

Empowering with Pay-As-You-Go Solar Solutions:

At the core of M-KOPA's business model is the provision of pay-as-you-go solar solutions. By combining mobile technology and renewable energy, the company offers affordable access to clean electricity to off-grid households. Customers can acquire solar home systems through a flexible payment plan, paying for the product in affordable instalments using mobile money services. This innovative approach ensures that even those without traditional bank accounts can benefit from clean and reliable energy sources, improving their quality of life and enabling economic opportunities.

Expanding Financial Inclusion Efforts:

With the infusion of $250 million in funding, M-KOPA is poised to significantly expand its impact across Africa. The investment will fuel the company's efforts to reach more underserved communities, particularly in remote areas where access to electricity and financial services is limited. By establishing additional distribution networks, M-KOPA aims to bring its life-changing solutions to millions of individuals who have been excluded from the formal financial system.

Enhancing Product Offerings:

M-KOPA's success lies in its ability to evolve and adapt to the changing needs of its customers. The recent investment will enable the company to enhance its product offerings beyond solar solutions. M-KOPA plans to develop new financial products tailored to the specific requirements of underbanked populations, such as microloans, insurance, and other value-added services. By diversifying its portfolio, M-KOPA aims to further empower its customers, providing them with a comprehensive range of financial tools to improve their livelihoods and drive sustainable economic growth.

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Sustainable Development Impact:

M-KOPA's innovative approach aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). By expanding access to clean energy and financial services, the company contributes to poverty alleviation, improved health and education outcomes, and the overall socio-economic development of communities across Africa.

Speaking about this round of investment, Jesse Moore, M-KOPA CEO and Co-founder said,

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. 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

Nick Riley, Corporate Financing Solutions at Standard Bank, added

Supporting M-KOPA is in line with our purpose of driving sustainable growth for Africa and her people. Financial inclusion not only enables economic growth, it also accelerates it. M-KOPA has, in a short time, managed to positively impact so many lives by enabling access to power and smartphone connectivity, which are a vital part of enabling the economic empowerment of all.

Masaki Nakajima, Senior Managing Executive Officer, General Manager of Media & Digital Business Unit at Sumitomo Corporation also added:

As a strategic investor, we are very excited to accelerate business growth through collaborative efforts in business development. By leveraging each expertise and resource, we believe this partnership will have a positive impact on both the financial and telecommunications sectors, ultimately enriching the lives of people across the continent.

M-KOPA's remarkable achievement in securing $250 million in investment reflects the growing recognition of its transformative impact on financial inclusion in Africa. With its pay-as-you-go solar solutions and innovative financial services, the company is poised to empower millions of underbanked consumers, providing them with access to clean energy and critical financial tools. Through its expansion efforts and commitment to sustainable development, M-KOPA is driving positive change, creating opportunities, and shaping a brighter future for individuals and communities across the African continent.