Early Days
In 2010, three visionary individuals, Jesse Moore, Nick Hughes, and banker Chad Larsonccame together in Nairobi to embark on a journey that would revolutionize the lives of thousands. They founded a startup that would later be known as M-Kopa. The trio had a shared passion for leveraging technology to uplift communities and create positive change.
In 2011, M-Kopa gained early traction with support from Signal Point Partners, an incubator, and managed to secure investments from influential backers like Richard Branson, Generation Investment Management, Blue Haven Initiative, and LGT Venture Philanthropy, the investment vehicle of the Princely Family of Liechtenstein. These funding rounds fueled their growth and provided the resources necessary to bring their ambitious vision to life. With the backing of these investors, M-Kopa officially launched commercially in 2012 with its headquarters in Nairobi.
M-KOPA, which means “to borrow” in Swahili is the pioneer and global leader of Connected Asset Financing that offers millions of underbanked customers access to life-enhancing products. M-KOPA’s advanced connected asset financing platform combines digital micropayments and IoT connectivity to offer access to products including solar lighting, televisions, fridges, smartphones, financial services, and more.
Growth
M-KOPA is known chiefly for its pay-as-you-go (PAYG) financing model that allows customers to build ownership of appliances over time by paying an initial deposit followed by flexible micro-payments.
By 2015, M-Kopa had already made a significant impact. It had empowered over 150,000 households in Kenya, Uganda, and Tanzania, enabling them to access affordable and reliable solar power solutions. Users were making approximately 10,000 mobile payments daily through M-Kopanet, the company’s cloud platform. Their revenue had soared to over $40 million, a testament to the effectiveness of their business model.
In early January 2016, they proudly celebrated the milestone of connecting over 300,000 homes in East Africa to solar power. That same year, M-Kopa introduced solar-powered televisions to the market, selling an impressive 30,000 units in Kenya alone. The company recognized the importance of internet access and aimed to bridge the digital divide by providing connectivity options to its customers. By December 2016, M-Kopa had sold a cumulative total of around 400,000 systems in Kenya, Tanzania, and Uganda since their inception in 2011. Under the leadership of CEO Jesse Moore, plans were in motion to establish local manufacturing facilities, further contributing to the region’s economic growth.
In January 2018, M-Kopa reached another significant milestone, successfully wiring over 500,000 homes and selling approximately 90,000 solar rechargeable televisions. Their commitment to sustainable energy solutions remained unwavering. The company announced a partnership with Solinc East Africa to acquire an additional 500,000 photovoltaic solar panels, solidifying its position as a key player in the renewable energy industry. Their ambitious plans caught the attention of FinDev Canada, who invested $10 million in M-Kopa in February 2018. This funding round, led by CDC and including existing shareholders LGT Venture Philanthropy and Generation Investment Management, provided the necessary capital to fuel M-Kopa’s continued expansion.
In July 2021, M-Kopa made an exciting announcement of its expansion into Nigeria, taking its mission to empower lives and provide sustainable energy solutions to a new market.
In 2022, the African asset financing platform M-Kopa raised $75 million in a growth equity funding round, taking its total capital raised to $190 million.
