African fintech M-Kopa secures $200m debt financing and $55m equity funding
African fintech firm M-Kopa has secured $200 million in sustainability-linked debt financing and $55 million in an equity funding round.
The debt financing was led and arranged by Africa’s largest bank, Standard Bank Group, with additional participating lenders including The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO, British International Investment, Mirova SunFunder and Nithio.
The $55 million equity funding round was led by existing backer Sumitomo Corporation, which invested $36.5 million. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude also contributed.
Founded in 2011, M-Kopa provides digital financial services to underbanked consumers in Kenya, Uganda, Nigeria and Ghana. The company provides flexible credit to people with limited pre-existing financial identities and conventional collateral to buy smartphones, solar power systems, digital loans and health insurance, which can be paid off through micro-instalments over time.
With the new funding, M-Kopa plans to grow its smartphone services, expand into new markets and increase its product offerings. It also plans to deploy the cash to help boost financial inclusion among women and reduce greenhouse gas emissions in East Africa. The company says the sustainability-linked debt financing is also structured to help the firm hit its environmental and social targets.
Jesse Moore, CEO and co-founder of M-Kopa, says the company aims “to create a positive environmental and social impact by systematically addressing the barriers to digital financial services”.
“We have already unlocked $1 billion in cumulative credit to over three 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,” Moore adds.