M-kopa was established in 2010 as a lending business model that combined the power of digital micropayments with IoT (Internet-of-Things) connectivity to make financing of solar services and other household products more accessible. M-kopa is a connected asset financing platform that offers millions of under-banked customers’ access to life enhancing products and services through an innovative financing model that gives instant access to the product, while building ownership over time through flexible micro-payments.
AECF invested early into the business, which has since built one of the world’s most advanced connected asset financing platforms. Through the support, M-kopa Solar has provided nearly $400 million in financing that has enabled 1 million customers to access solar lighting, energy-efficient televisions and fridges, smartphones, cash loans, among other household products.
AECF, through the M-kopa investment contributed towards improving access to finance without requiring up-front collateralisation.
The innovative financing model unlocked 1.5 million (worth over $365 million) loans for individuals to own a diverse range of life-enhancing products and services, made possible with flexible, micro-payments, afforded $428 million in energy savings, connected more than 150,000 customers to the internet with M-kopa financed smart phones and increased incomes and livelihoods.
Today, M-Kopa has won an assortment of awards and attracted additional investment from Generation Investment Management, Lighthouse, CDC Investment Works and Grey Ghost.
“We are thrilled about the positive impact that solar-powered fridges can have on customers’ lives, particularly women. A fridge saves precious money and time at home, and helps small entrepreneurs grow their businesses. After months of hard work by our team and our partners Embraco Nidec, it is so rewarding to see this award-winning product begin to upgrade lives across East Africa.” – Jesse Moore CEO and Co-Founder, M-KOPA