InfraCo Africa invests in Kenyan rural internet provider

Mawingu, a Kenyan-based internet service provider, successfully closed its Series B investment round bringing onboard new investor InfraCo Africa.

InfraCo Africa’s $6 million commitment, delivered through its dedicated investment arm, will support Mawingu to roll out infrastructure across Kenya that will increase access to affordable internet connectivity to underserved households and businesses. InfraCo Africa was joined by Mawingu’s institutional investors E3 Capital and FMO, contributing $1.5 million each as part of this fundraise.

Currently, Mawingu operates in 15 counties and has more than 7,500 active customers. The new round of funding will enable the company to expand to an additional 25 counties in Kenya, focusing on rural markets.

Over the past year, Mawingu has proved that there is a demand for quality internet connectivity for commercial enterprises and homes outside of urban centres.

InfraCo Africa chief investment officer, Claire Jarratt said, “Access to the internet is a key driver of economic development, and InfraCo Africa is pleased to be supporting Mawingu’s pioneering telecoms business in Kenya. As our first telecoms investment, Mawingu appealed to us as its services are designed to provide affordable internet access tailored to the needs of underserved rural customers.”

Bertrand Ketchassi, InfraCo Africa investment manager added, “With the total addressable market of 12 million homes, we believe this is the right investment at a key stage of the sectors’ growth.”

Mawingu will begin its expansion plans in February 2023 and has set its eyes on western Kenya targeting Kisii, Migori, Bungoma and Kakamega. This kick-off will set the pace for the year as more parts of the country will be connected monthly, moving forward.

Stadia Capital played an instrumental role acting as the transaction advisors for the raise and Bowmans Kenya acted as the legal advisors.