FinTech M-KOPA Raises $75M to Expand Platform for Underbanked

African FinTech startup M-KOPA raised $75 million in a growth equity round to expand its financial services platform for the underbanked into additional countries beyond its current operations across Kenya, Uganda, Nigeria and Ghana.

The fresh capital will also be used to help M-KOPA grow beyond asset financing by scaling other products — health insurance, cash loans, and buy now pay later (BNPL) merchant partnerships, according to multiple reports.

Headquartered in Nairobi, Kenya, and founded in 2011, M-KOPA offers connected financing and digital financial services to underbanked consumers. As of this year, the company has provided $600 million in financing to an estimated 2 million people.

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The growth capital round was led by Generation Investment Management and Broadscale Group, with participation from new investors including LocalGlobe’s Latitude Fund and HEPCO Capital Management. Existing investors CDC Group and LGT Lightrock also backed the round. M-KOPA’s total equity funding following this infusion totals $190 million.

Jesse Moore, M-KOPA CEO and co-founder, said it’s a plus to get backing from investors that have “deep experience supporting growth-stage companies” as M-KOPA moves towards expansion and meeting more customers’ needs and expectations.

“Our innovative model means we have enabled financial empowerment for over two million people already through micro-payments, but there are still millions of people across the continent that are stuck with limited economic options. With this funding, we will expand to more markets across Africa and scale to over 10 million customers in the next few years,” Moore said.

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M-KOPA combines digital micropayments with internet-of-things (IoT) technology to deliver financing to more people. Customers are empowered to take ownership of their assets and build up their credit over time using a flexible payment model.

“M-KOPA’s unique technology-enabled approach to providing essential consumer goods and financial services is an inspiring engine of empowerment perfectly aligned with our mission of Disruption for Good,” said Broadscale Managing Partner Andrew Shapiro.

“The company’s rapid customer growth demonstrates the massive unmet demand in this sector, and we look forward to working with M-KOPA as they continue to scale their reach and impact across Africa,” Shapiro said.