FinDev Canada is happy to announce a commitment of US$ 20 million in convertible notes to M-KOPA, a leading fintech platform. M-KOPA helps underbanked customers in Africa to gain access to financial services and products that improve their connectivity and quality of life.
FinDev Canada’s commitment will add to the US$ 250 million in new financing recently secured by M-KOPA, to support its growth and expansion into new markets.
In Sub-Saharan Africa, 85% of adults live on less than US$ 5 per day, and only 14% can access loans from financial institutions. M-KOPA’s “pay-as-you go” (“PAYG”) model, requires customers to pay an initial deposit followed by daily or weekly instalments, facilitating their access to finance and life-enhancing products and services that would otherwise be prohibitive.
The company provides products such as smartphones, e-motorbikes and cash loans with its flexible payment model. These products and services help customers perform income-generating activities and gain connectivity that supports access to information, education, health, and mobile banking.
To date M-KOPA’s products have reached over 3 million customers and have provided first-time mobile internet access to over 400,000 people. Their financial solutions have unlocked over US$ 1 billion in credit for underbanked customers and has also helped avoid 2M tons of CO2 emissions through the company’s solar home systems.
“We are proud to continue supporting FinDev Canada’s first ever client throughout its expansion,” said Lori Kerr, CEO of FinDev Canada. “Throughout our long-standing relationship, we continue to invest in M-KOPA due to its value proposition and positive impact in Sub-Saharan Africa, particularly in access to finance, job creation and sustainability.”
Jesse Moore, M-KOPA CEO and Co-Founder commented, “We are thrilled to have FinDev Canada’s continued commitment to support M-KOPA’s growth and impact. At M-KOPA, we consistently work hard to develop innovative solutions to accelerate digital and financial inclusivity, in order to create positive change in our customers lives and the environment. We are proud to have unlocked over $1 billion in credit for more than 3 million underbanked customers to date, as well as established a unique business model that provides the opportunity for large scale job creation. This new investment will assist us to further close the gender economic and digital divide and expand our business into new markets.”
This transaction qualifies under the 2X Challenge – financing for women, as the company has a women employment rate of 50%.
The deal is also expected to contribute to the Sustainable Development Goals, particularly Gender equality (SDG 5), Affordable and clean energy (SDG 7), Decent work and economic growth (SDG 8) and Climate action (SDG 13).
About FinDev Canada
FinDev Canada is Canada's development finance institution (DFI), supporting the private sector in developing markets to promote sustainable development. Through loans and investments, FinDev Canada looks to mobilize private sector investment in developing markets to support business initiatives which enable women's economic empowerment, climate action and market development, all under the banner of the United Nations’ Sustainable Development Goals. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada here.
About the 2X Challenge
The 2X Challenge was founded by the development finance institutions (DFIs) from the G7 as a call to action to shift more capital towards investments that empower women in developing countries to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation. More information about the 2X Challenge can be found here: https://www.2xchallenge.org
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