M-Kopa to take $4 Million Debt to Finance Working Capital

M-Kopa CEO, Jesse Moore (R) and Safaricom CEO Bob Collymore
M-Kopa CEO, Jesse Moore (R) and Safaricom CEO Bob Collymore
President Obama is taken through the working mechanism of the M-Kopa Solar Home system after delivering remarks at the Global Entrepreneurship Summit in Nairobi in 2015

M-Kopa has been one of Kenya’s most successful startups thus far. M-Kopa announced last year, it raised $19 Million to fund its expansion to one million homes by 2018. The round of funding involved among others Richard Branson, Steve and Jean Case. The round of funding was preceded by a series D rounding of funding earlier in the year, where the firm raised  $12.45 Million in Equity and debt. The round was led by LGT Venture Philanthropy and was meant to allow the company expand its product offering, grow its operating base in East Africa and license its technology to other markets. The round was preceded by another led by Commercial Bank of Africa, where the firm raised US$20 million in its third round of funding in 2013.

The firm has now announced it is taking a $4 Million debt note from the impact debt issuance programme established in partnership with Liechtenstein banking group. The programme established a $20 Million size pool for M-Kopa. This is the second time the start up is tapping into the pool from the pool following similar efforts which saw it receive $3 Million. The notes are offered as part of a securitised vehicle available to institutional investors with the minimum purchase price at $150,000. The company will then make repayments for the loans including securities based on the collections made from customers.

The $4 Million will support working capital needs including the distribution of  80,000 solar home systems over the next 18 months. M-Kopa currently connects more than 250,000 users and has won many accolades for its innovations. This includes the Best Mobile Innovation for Emerging Markets award at the ended Mobile World Congress in Barcelona, Spain for its M-KOPA III Solar Home System.