DAI Magister was privileged to advise Africa’s leading connected asset financing platform, M-KOPA, on its recent growth equity round of $75m, led by Broadscale and Generation Investment Management with participation from CDC Group and LGT Lightrock, taking its total funding to $190 million.
Head quartered in Nairobi, M-KOPA provides digital financial services to customers who are unable to secure financing without a guarantor or collateral, across 4 markets in Africa. Their innovative model allows consumers instant access to more products and services, while working towards asset ownership and, building up their credit history over time through the flexible micro-payments.
Their 2 million enabled users can access a variety of products and services from smartphones, financial services, health insurance to solar-powered appliances. With $600m in financing provided to date, the innovative company has recorded nearly 2.5x growth of new customers in 2021 and is projected to reach 3 million customers by the end of 2022.
The funding will be used to not only scale into new countries across the continent and expand its other financial products such as cash loans, health insurance and BNPL merchant partnerships but to further develop its customer relationship and tech.
M-KOPA’s COO, Mayur Patel said, “We are enabling customers who otherwise could not have been able to access that kind of support, to then plough that back into productive assets that are helping them generate more income in their lives.”
“When we go back to our customers, which we do regularly, and ask them how they use the products or services, over 30% of them report back to us saying they use this to kind of generate additional income and support their livelihoods.”
DAI Magister was delighted to have advised and guided M-KOPA in this process to allow them to expand their platform to support the millions of people across the continent that have limited economic options.
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