M-KOPA Solar, the world’s leading pay-as-you-go energy provider to off-grid homes, has announced the closing of a US$19 million financing round led by Generation Investment Management LLP.
M-KOPA provides off-grid customers a way to leapfrog over expensive and unreliable grid power and benefit from solar power on their own roof. The company is on track to reach its initial target of one million homes in East Africa by end of 2017. The new investment from Generation and others will be used to further expand the company’s management team, product range and international operations.
London-based Generation Investment Management, founded by former US Vice President Al Gore together with David Blood, led the round, which also includes new investments by Sir Richard Branson (Founder of the Virgin Group) and Steve Case (Founder of AOL), as well as reinvestment by existing shareholders.
Jesse Moore, CEO and Co-Founder, M-KOPA, says:
“We’re very pleased to have the world’s leading sustainability investors and entrepreneurs backing us at M-KOPA. We’re proving that solar power for the off-grid world will be transformative for customers, good for the planet and profitable for investors.
In just three years, we’ve reached over a quarter-million homes across three countries and we are just getting started.”
Colin le Duc, Partner at Generation Investment Management, comments:
“Under the stewardship of an outstanding management team, we believe that M-KOPA has consistently demonstrated its role as a global leader in terms of robust technology, market traction and scale. With 1.3 billion people currently off-grid, M-KOPA’s innovative model means that modern solar-powered appliances can be made affordable to a huge new market. In addition to attractive long-term financial returns, this brings clear climate advantages and financial savings for [customers].”
M-KOPA makes its solar home systems affordable to low-income households on a pay-as-you-go instalment plan.
In just three years since commercial launch, M-KOPA has connected more than 280,000 homes in Kenya, Tanzania, and Uganda to solar power and is adding over more 500 homes each day. M-KOPA has over 2,000 full time staff and sales agents across East Africa.
M-KOPA has been recognized globally for scaling up its pay-as-you-go solar offering, including winning the 2015 Zayed Future Energy Prize and being selected by Fortune Magazine as one of the Top 50 Companies Changing the World.
