M-Kopa, an energy start-up that offers pay-as-you-go solar products to the financially excluded families in Africa has secured $250 million in new funding.
Announcing the development on May 15, M-Kopa, a Kenyan fintech start-up stated that the capital included $55 million in equity and $200 million in debt.
The newly raised capital, M-Kopa noted, will be used in its plans to extend operations to more countries in the continent.
“This marks one of the largest combined debt and equity raises in the African tech sector, enabling us to continue to scale our rapid growth.
Moreover, it will also further our mission of improving financial and digital inclusion in the region,” a statement by the company read in part.
M-Kopa energy start-up expansion
With the new capital at its disposal, M-Kopa announced plans to enter South Africa as its fifth country.
Founded in 2010, the company currently operates in Kenya, Uganda, Nigeria and Ghana.
M-Kopa has three million customers in the four countries and provides products including solar panels, LED lights, radios, smartphones, and batteries.
Over the 12 years of its operations, M-Kopa thrives on its flagship business model where customers acquire electronics through a micro-installment payment system.
The company also ventured into the financial market through its insurance and credit facilities.
Additionally, M-Kopa has sustained its efforts to boost the continent in the shift toward clean energy.
Consequently, he planned entry into South Africa will see the company venture into the e-mobility market with electric motorcycles as its first products.
According to a report by Disrupt Africa, African tech startups raised $650 million in the first quarter of 2023, representing a 57.2 percent dip, compared to the same period in 2022.