Pay-as-you-go energy provider, M-KOPA Solar has secured US$80 million to provide finance for pay-as-you-go solar installations in one million homes over the next three years.
The Kenyan based company secured US$25 million in US$ debt from responsAbility, Symbiotics, and Triodos Investment Management while Stanbic Bank is leading a US$55 million local currency equivalent debt facility and has committed US$9 million. CDC (US$ 20 million), FMO (US$ 13 million) and Norfund (US$ 13 million) are part of the lending syndicate. It is in Kenya Shillings and Uganda Shillings and will be backed by customer receivables, paid over mobile money payment plans. It is the largest commercial debt facility to date in the pay-as-you-go off-grid energy sector.
According to Jesse Moore, CEO and Co-Founder, M-KOPA Solar, “CDC’s debt investment comes on the back of it leading our series F equity raise last year. We’re delighted that Stanbic, Norfund and FMO are also investing. This facility offers lenders the chance to connect low-income homes to power and information – while delivering sustainable returns. It’s part of an emerging trend for development partners and investors to look at more cost effective ways to fund last mile connectivity.”
M-KOPA has connected over 500,000 homes in East Africa to affordable, safe and clean energy. Its predominantly low-income customer base is accessing lighting, phone charging, radio and TV on daily mobile money payment plans that are less than the typical cost of kerosene.
M-KOPA’s customers now enjoy over 62.5 million hours of kerosene-free lighting per month. This means that they will save over 600,000 tonnes of CO2 over four years. Customers who complete their payment plans are upgrading with M-KOPA for more lights, TVs, energy-efficient cooking stoves, smart phones and water tanks. The company has sold well over 160,000 upgrade units to date – including 90,000 Solar TVs.
