M-KOPA Solar, Kenyan pay-as-you-go solar energy provider has secured a new round of funding that will be used to extend their product offering to more homes and individuals across Africa.
The investment amount, which is undisclosed, includes a first-ever $10 million investment from FinDev Canada, according to ITWebAfrica.
Led by U.K. government-owned investment company CDC, a previous investor in the Kenyan company which has now committed an additional $7 million, the round includes follow-on investments by existing shareholders Generation Investment Management and LGT Venture Philanthropy.
As a result, Dave Easton from CDC has officially joined the board of directors at M-KOPA Solar.
The company’s latest round of funding will be used to assist the business in its efforts to bring power to another one million homes over the next five years, Techmoran reports.
M-KOPA provides affordable, safe and clean energy to three million people in East Africa, according to a recent press release.
Due to insufficient capacity, poor reliability, and high costs, only around 32 percent of the population in sub-Saharan Africa has access to electricity, ENCA reports.
Pay-as-you-go solar is changing that reality for many Africans, thanks to the efforts of M-KOPA, which provides affordable means for users to buy solar products on credit and build a creditworthiness and profile that will enable the purchase of more products over time.
Jesse Moore, co-founder, and CEO of M-KOPA Solar explained the importance of this recent funding round for the company and the people that they serve.
“M-KOPA is about upgrading our customers’ lives with high-quality and affordable energy solutions. This investment will help us bring power to another one million households over the next five years,” said Moore, according to Techmoran.
In February, American financial services corporation Mastercard and M-KOPA partnered in an effort to expand solar opportunities for homes and businesses in Africa.
The partnership will see M-KOPA piloting Mastercard’s quick response (QR code) payment technology in Uganda, with the aim of improving access to its pay-as-you-go solar service, according to a Mastercard press release.
Masterpass QR is currently available in Ghana, Kenya, Nigeria, Rwanda, Tanzania and Uganda, which is why the East African nation was chosen for the pilot phase of the partnership.
A successful pilot program will see the partnership extend to other parts of the continent.