African FinTech M-KOPA has raised over $250m in new debt and equity funding to expand its offering to underbanked consumers in Sub-Saharan Africa.
According to FinTech Finance, over $200m in sustainability-linked debt financing was led and arranged by Standard Bank Group.
Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder and Nithio.
A further $55m in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5m to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude, the sister fund to Local Globe, also participated in the transaction.
M-KOPA plans to use the new funding to grow its smartphone services, expand its model to new markets and extend its financed product set.
M-KOPA CEO and co-founder Jesse Moore said, “At M-KOPA, we are working hard to create a positive environmental and social impact by systematically addressing the barriers to digital financial services. We have already unlocked $1bn in cumulative credit to over 3 million customers, and are proud of the thousands of local jobs we’ve created during tough economic times.
“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”.
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