M-Kopa raises record Ksh35bn in debt and equity

Kampala, Uganda | THE INDEPENDENT |Solar and asset financing firm M-Kopa has secured Kshs35 billion ($255 million) financing in new debt and equity from Standard Bank and Japanese-based trading house Sumitomo Corporation among others for expansion in sub-Saharan Africa.

M-Kopa said the capital injection includes Kshs7.5 billion ($55 million) in equity and Kshs27.4 billion ($200 million) in debt, according to Business Daily Africa.

This is the highest ever to be raised by a Kenyan start-up. 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 through a flexible payment model.

“As we continue to scale we remain committed to building a sustainable business and closing economic and digital gender gaps. We are delighted to have the support of new and existing investors who share our vision and mission,” M-Kopa Solar CEO and co-founder Jesse Moore said.

The funding round was led by Standard Bank which advanced $200 million in sustainability-linked debt financing, while Sumitomo had injected $36.5 million in new equity investment. Other participants in the fund-raising included UK-based investment firm Lightrock, M-Kopa said.