M-KOPA Secures Finance from CDC and FinDev Canada
FinDev Canada is making its first ever investment of US$10million into M-KOPAs latest funding round. The round is being led by CDC and also includes follow on investments by existing shareholders Generation Investment Management and LGT Venture Philanthropy. As part of this investment, Dave Easton from CDC has officially joined M-KOPA’s Board of Directors.
Kenya-based M-KOPA has connected 600,000 homes across Africa, providing 75 million hours of kerosene-free lighting each month. Its battery-powered systems come with lights, phone charging, and a solar powered radio – with daily mobile money payments being less than the cost of traditional fuels. Customers can now also opt for a more powerful system with digital solar TV.
After completing their payment plan the customer owns the system outright, or is able to get more cost-effective financing for a range of productive assets. M-KOPA has sold over 250,000 of these upgrade assets including more lights, televisions, energy-efficient cooking stoves, water tanks and internet-enabled smartphones.
Nick O’Donohoe, CEO, CDC says, “CDC is committed to supporting the off-grid solar industry in Africa and we’re demonstrating that commitment today by increasing our investment in M-KOPA by a further US$7m. M-KOPA is changing the lives of hundreds of thousands of low-income families in East Africa by bringing affordable and clean energy, financial services and essential appliances to their homes. I’m delighted that other investors like Canada’s new development finance institution are following our lead and investing long-term capital in the company.”
Paul Lamontagne, Managing Director of FinDev Canada says, “M-KOPA is exactly the type of entrepreneurial company that FinDev Canada wants to support. Our investment will allow M-KOPA to reach more households across East Africa, providing access to power, improving the environment, creating significant levels of employment and helping customers save money and build a credit history.”
Most of the three million people living in M-KOPA connected homes are classified as low-income with per capita income of less than US$2 per day. Access to power is a major issue in Africa. According to the International Energy Agency, more than two-thirds of the population in Sub-Saharan Africa live off the electricity grid.
Jesse Moore, Co-Founder and CEO, M-KOPA says, “M-KOPA is about upgrading our customers’ lives with high-quality and affordable energy solutions. This investment will help us bring power to another one million households over the next five years.”
Women stand to gain the most from this off-grid solution and availability of electricity will have a transformative impact on family life. M-KOPA also offers good-quality jobs for women, with 52% of 800-plus East African work force of permanent employees and 44% of its commissioned sales agents being female.