M-KOPA Secures $51 Million From US Government to Increase Access to Affordable Smartphones in Kenya
M-KOPA, a fintech platform operating in Kenya and four other African countries, has secured a USD 51 million loan from the U.S. International Development Finance Corporation (DFC) to enhance digital connectivity across Kenya.
This funding will allow M-KOPA to provide affordable smartphones to underserved communities, thereby expanding access to digital financial services for underbanked individuals. The DFC also announced plans to open a regional office at the U.S. Embassy in Nairobi to support private sector development in Kenya and across Africa.
In the previous year, M-KOPA raised over USD 250 million in new debt and equity funding to extend its financial services to underbanked consumers across Sub-Saharan Africa. Present in Kenya, Uganda, Nigeria, and Ghana, M-KOPA is well-known for its pay-as-you-go (PAYG) financing model, which allows customers to gradually own appliances by making an initial deposit followed by flexible micro-payments.
M-KOPA has provided more than $1Bn in credit to individuals who would not ordinarily qualify for formal financing products. Through its innovative micropayments model, which does not require collateral or a guarantor, the company has unlocked access to previously inaccessible products and digital financial services for over 4 million people.
By making smartphones affordable, its offering has enabled customers to connect to the internet, many for the first time, and to improve their livelihoods as active participants in the digital economy.
The company also aims to expand its financial services and product offerings, as well as reduce greenhouse gas emissions in Kenya and Uganda, where its solar products are particularly popular.
