M-Kopa has raised Kes34.26 billion from international investors to expand credit financing in the Sub-Saharan region.

The Solar and financial tech firm’s long-term partner and investor, Standard Bank Group, led the new debt and equity funding.

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, among others, also participated in the round.

It will use the funds to grow its smartphone services, expand to new markets, and extend its financed product set.

M-Kopa CEO and Co-founder Jesse Moore noted that the company is 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,” Moore added.

Further, Moore noted that the firm is 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.”

Through its platform, M-Kopa combines the power of digital micropayments with the Internet of Things (IoT) to give customers access to productive assets.

In markets where individuals have limited pre-existing financial identities and conventional collateral, its flexible credit model allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance.

M-KOPA’s solution embeds credit into the product through a smart digital connection, instantly giving customers ownership, which they can pay off through micro-instalments.

The company has sold over 3 million of these products through a unique direct sales model with more than 10,000 agents.

 Standard Bank Corporate Financing Solutions Nick Riley noted that supporting M-KOPA aligns with the Bank’s purpose of driving sustainable growth for Africa and her people.

“Financial inclusion not only enables economic growth, it also accelerates it. M-KOPA has, in a short time, managed to positively impact so many lives by enabling access to power and smartphone connectivity, which are a vital part of enabling the economic empowerment of all.” added Riley.

M-Kopa’s operations started in East Africa before spreading to Nigeria in 2021 and Ghana recently.