July 1, 2022
  • July 1, 2022

FinTech M-KOPA raises $75 million to expand its platform

By on March 1, 2022 0

African FinTech start-up M-KOPA raised $75m in growth round to expand its financial services platform for the underbanked in other countries beyond its current operations in Kenya, Uganda, Nigeria and in Ghana.

The new capital will also be used to help M-KOPA expand beyond asset financing by developing other products – health insurance, cash loans and Buy Now Pay Later (BNPL) merchant partnerships, according to multiple reports.

Based in Nairobi, Kenya, and founded in 2011, M-KOPA provides connected finance and digital financial services to underbanked consumers. Since this year, the company has provided $600 million in funding to around 2 million people.

See also: Pan-African asset finance model changes lender and consumer economics of pay-as-you-go plans

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 injection is $190 million.

jesse mooreCEO and co-founder of M-KOPA, said it was a plus to get backing from investors who have “extensive experience in supporting growth-stage businesses” as M-KOPA moves towards expansion and meets the needs and expectations of more customers.

“Our innovative model means that we have already empowered more than two million people financially through micropayments, but there are still millions of people across the continent who are stuck with limited economic options. With this funding, we will expand to more markets across Africa and reach over 10 million customers over the next few years,” Moore said.

Read more: Ecobank Says Africa’s Payment, FinTech Future Is Brilliant

M-KOPA combines digital micropayments with Internet of Things (IoT) technology to bring finance to more people. Customers are empowered to take ownership of their assets and build credit over time through a flexible payment model.

“M-KOPA’s unique technology approach to delivering essential consumer goods and financial services is an inspiring empowerment driver perfectly aligned with our mission of Disruption for Good,” said Andrew Shapiro, Managing Partner of Broadscale.

“The company’s rapid customer base growth demonstrates the huge unmet demand in this sector, and we look forward to working with M-KOPA as they continue to expand their reach and impact across Africa. “, Shapiro said.

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