A significant portion of the African population faces financial barriers, with over 85% of people living on less than $5.50 per day, according to a World Bank report. Many remain unbanked or underbanked, limiting their access to essential financial services. M-KOPA, a platform offering financing solutions tailored to this demographic, is addressing this gap with its pay-as-you-go (PAYG) model. The company recently raised $75 million in growth equity funding, marking a key milestone in its mission to empower underserved communities.
This latest funding brings M-KOPA’s total equity raised to $190 million. The round was led by Generation Investment Management and Broadscale Group, with participation from other investors, including the CDC Group, Lightrock, LocalGlobe’s Latitude Fund, and HEPCO Capital Management.Since its inception in 2011, M-KOPA has allowed customers to access essential products and services by making an initial deposit and repaying in small, manageable installments. Starting with solar-powered home systems, M-KOPA has expanded its offerings to include smartphones, TVs, refrigerators, and financial services like loans and health insurance.
Evolving Markets and Growing Reach
M-KOPA initially focused on East Africa, operating in Kenya, Uganda, and Tanzania. However, its geographic footprint has evolved, now including Nigeria and Ghana. The company has seen rapid growth in its newer markets, especially in smartphone financing, which has become its most sought-after product. For instance, M-KOPA sold 500,000 smartphones in just 18 months, a feat that took 10 years for its solar systems.
“In new markets, we start with smartphone financing due to its high demand. It allows us to scale rapidly and provide immediate value to customers,” said Mayur Patel, M-KOPA’s COO.The company has acquired over 50,000 customers in Nigeria and reports that Ghana has grown at twice the pace of its previous markets. Building on this momentum, M-KOPA plans to launch in additional markets in the coming years while expanding its product offerings in Nigeria and Ghana.
Empowering Underserved Communities
M-KOPA’s financing model is designed to be inclusive, requiring no collateral or credit checks. Customers can make a small deposit—often as low as $30—and repay the remaining cost through daily or weekly installments as low as 30 cents. This model has proven particularly beneficial for small business owners and gig workers, who often rely on smartphones and other tools to generate income.CEO Jesse Moore emphasized the platform’s impact: “Our model is designed to be accessible to everyone, removing traditional barriers to credit. This allows customers to acquire products that improve their quality of life and generate additional income.”
Scaling Impact
M-KOPA has achieved impressive growth, surpassing 2 million customers last month, doubling its customer base in just 18 months. The company aims to reach 3 million customers within the next nine months and expand its on-the-ground sales force from 10,000 to 20,000 by year’s end.In addition to its asset-financing offerings, M-KOPA is exploring new financial services such as health insurance, cash loans, and buy-now-pay-later (BNPL) solutions. The company plans to invest heavily in technology and customer relationships to enhance its offerings further.
To date, M-KOPA has unlocked over $600 million in financing for its customers, enabling them to access products and services that significantly improve their livelihoods. According to Patel, over 30% of customers report using M-KOPA’s offerings to generate additional income.With its unique PAYG model and focus on cross-selling financial services, M-KOPA continues to differentiate itself in the African fintech landscape. By combining flexibility with accessibility, the company is well-positioned to drive financial inclusion across the continent and beyond.
