KENYA – M-KOPA, the fintech platform that provides connected financing and digital financial services to underbanked consumers across four markets in Africa, has announced its US$75 million growth equity round, bringing its total equity funding to US$190 million.
The round was led by Generation Investment Management and Broadscale Group, with participation from new investors including LocalGlobe’s Latitude Fund and HEPCO Capital Management.
M-KOPA’s existing investors, CDC Group and LGT Lightrock also participated in the round.
With the funding, M-KOPA plans to expand into additional countries, adding to its hubs in Kenya, Uganda, Nigeria and recently launched Ghana, to further scale its footprint across the continent.
The company will also continue expanding its flexible daily and weekly payments model to go beyond asset financing, by scaling its financial services products such as health insurance, cash loans and BNPL merchant partnerships that have proven to be popular with customers.
“We’re thrilled to partner with leading global investors with deep experience supporting growth-stage companies as we expand our platform to serve more of our customers’ needs,” Jesse Moore, CEO and Co-founder, M-KOPA said.
“Our innovative model means we have enabled financial empowerment for over two million people already through micro-payments, but there are still millions of people across the continent that are stuck with limited economic options.
“With this funding, we will expand to more markets across Africa and scale to over 10 million customers in the next few years.”
Launched in 2011, M-KOPA’s financing platform enables underbanked customers to access a broad range of products and services without collateral or a guarantor.
By combining the power of digital micropayments with the Internet-of-Things [IoT] technology to make financing more accessible, customers are enabled to build ownership of their assets as well as build their credit histories over time through a flexible payment model.