[Transcript] #60: M-Kopa - How the asset financing platform is providing access to consumer products across Kenya & Africa
Transcript for podcast originally recorded in January 2023
😉 In January 2023, we explored the story of M-Kopa, the African asset financing platform. M-KOPA was established in 2011, and is focused on providing affordable solar energy solutions to off-grid African households.
Initially, the company utilized mobile money platforms to enable pay-as-you-go solar power systems, achieving its first major milestone in 2014 by connecting over 100,000 homes. By 2017, M-KOPA had expanded its product offerings to include smartphones, televisions, and other appliances on credit, integrating financial services into its business model.
In recent years, the company has secured significant funding and partnerships, enhancing its technology and expanding into new markets. Today, M-KOPA continues to innovate in digital financial services and green energy solutions, aiming to reach millions of underserved customers across Africa.
Companies discussed: M-Kopa, Safaricom (M-Pesa), d.light, Zola Electric, Transsion, Samsung, Nokia (HMD global), Airtel, MTN, Mobisol, Carbon & Fairmoney
Business concepts discussed: Rural electrification, Payment infrastructure, Pay-as-you-go Solar, Off-grid energy, asset financing, credit scoring, risk assessment & renewable energy
Enjoy!
Olumide Ogunsanwo
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Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today we're going to talk about M-Kopa, the African Asset Financing Platform. We'll explore the M-Kopa story across five areas. 1) African electrical power context, 2) Early history, 3) Product and monetization strategy, 4) Competitive position & exit options. 5) Overall outlook. This episode was recorded on January 15th, 2023.
M-Kopa is an asset financing company that provides solar power phones, TVs, and fridges to consumers in East and West Africa.
[00:00:31] Bankole Makanju: Yes. Also, “Kopa” means to borrow in Swahili.
[00:00:40] Olumide Ogunsanwo: And “M” stands for mobile.
[00:00:42] Bankole Makanju: That's where we're gonna get the name for our next startup. Just look at a bunch of languages. And Swahili is definitely one of them.
[00:00:48] Olumide Ogunsanwo: In corporate speak and M-Kopa is a connected asset financing platform that serves customers across Africa. Yikes! And then my least favorite of all, M-Kopa is a connected asset financing platform that offers millions of underbanked customers access to life enhancing products and services. Geez, just gimme a break with the marketing crap.
They started off in 2011/2012 so they're actually one of the older companies we've spoken about. They're ~10 years old.
[00:01:20] Bankole Makanju: According to Crunchbase, they've raised over $260M in debt and equity and grandly in 10 years. That's incredible! They are probably top 10 most funded African startups ever.
[00:01:34] Olumide Ogunsanwo: Probably, they are definitely. I think the legendary fundraiser title goes to Jumia who raised $1.3B-$1.5B in 10 years.