Solar kits firm M-Kopa seeks US$3m funding from FMO to finance growth

KENYA – M-Kopa, the Kenyan platform which provides digital financial services and solar systems and devices, is negotiating a US$3 million expansion financing with the Dutch Development Finance Bank (FMO).

“The proposed facility increase of US$3 million will add up to the existing receivables facility with M-Kopa Kenya. This will allow the company to continue its growth trajectory and provide more products to its customers,” FMO said in a note.

Half the amount will come from Access to Energy Fund, which is an FMO-managed vehicle dedicated to financing energy projects in developing countries while the other half will be provided by Massif Fund, a vehicle that supports innovative businesses.

In 2017, the two funds each pumped US$5.5 million into the capital of M-Kopa Kenya and to date, the Kenyan company has committed over US$400 million in financing to an estimated 1 million clients, primarily in Kenya, Uganda, and Nigeria.

“The proposed facility increase of US$3 million will add up to the existing receivables facility with M-Kopa Kenya and will allow the company to continue its growth trajectory and provide more products to its customers”

FMO

In March 2021, the company, together with Pula, a platform that offers insurance and digital products to help small-scale farmers, received grants totalling $1.3 million from a fund backed by the African Development Bank Group (AfDB) to conduct market research on women access to digital financial services.

Pula received US$1 million while mobile phone-based solar kit reseller M-Kopa got US$300,000.

The research by the two companies will seek to find ways of enhancing women’s access to digital financial services including loans and microinsurance.

The grants were disbursed through the Africa Digital Financial Inclusion Facility, a blended finance vehicle supported by AfDB.

M-Kopa is an African connected asset financing platform that provides underbanked customers in Africa to essential products including solar lighting, televisions, fridges, smartphones & financial services.

M-Kopa was launched commercially in 2012 and is headquartered in Nairobi, Kenya.

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