AfricaGoGreen Fund reveals M-KOPA investment

The AfricaGoGreen Fund (AGG), a fund managed by Cygnum Capital Asset Management, has invested $10 million in fintech platform M-KOPA. The transaction was closed in December, with AGG investing $8 million in M-KOPA Kenya and $2 million in M-KOPA Uganda.

Through its flexible digital credit model, M-KOPA provides underbanked customers access to productive assets. Customers pay an initial deposit, followed by daily or weekly micropayments enabled by internet-of-things technology. M-KOPA allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance. M-KOPA’s operations started in East Africa and expanded to Nigeria in 2021 and, more recently, Ghana.

Farai Sekeso, executive director at Cygnum Capital said, ”We are genuinely thrilled about this relationship with M-KOPA, which advances the fund’s goal of supporting businesses and projects that reduce greenhouse gas emissions which in the case of M-KOPA is through supporting the growth of its EV and clean cooking product offering in Kenya and Uganda. We are delighted to support M-KOPA’s drive towards creating a positive environmental and social impact by systematically addressing the barriers to digital financial services.”