M-KOPA, a fintech platform operating in Kenya and four other African countries, has been granted a $51 million loan from the U.S. International Development Finance Corporation (DFC) to enhance digital connectivity across Kenya.
Details
This funding will allow M-KOPA to provide affordable smartphones to underserved communities, thereby expanding access to digital financial services for underbanked individuals.
Background
The company currently operates in Kenya, Uganda, Nigeria, and Ghana and operates 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.
Zoom Out
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.
How It Works
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.
Why This Matters
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.
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