African credit financing platform M-KOPA has signed $202 million in “sustainability-linked” debt financing organised by Standard Bank.

The FinTech also secured $36.5 million in new equity investment from Sumitomo Corporation.

M-KOPA provides digital financial services to underbanked consumers in Kenya, Uganda, Nigeria and Ghana through a flexible credit platform that uses data to combine “digital micropayments” with IoT technology.

The company, launched in 2011, has so far provided upwards of $1 billion in credit, enabling three million customers to access smartphones, solar power systems, digital loans, and health insurance.

M-KOPA said that while it has seen impressive growth since its establishment, the company has further ambitions to reach a target of more than 10 million customers and expand into more African markets over the next couple of years

“Standard Bank Group remains an important partner in our growth journey, and they remain supportive of our aspirations to ensure that Africa continues to grow and ultimately thrive,” said Jesse Moore, M-KOPA. “Not only does Standard Bank provide an innovative and bespoke approach to our financing needs, their knowledge and understanding of the African continent enables us to achieve our ambitions.”

Nick Riley, corporate finance solutions at Standard Bank, said that Africa has significant economic potential, particularly for foreign investors.

“For a business like M-KOPA to expand geographically, they require a reliable mechanism to raise funding in multiple currencies," continued Riley. "Standard Bank’s ability to structure and arrange solutions that cater for several currencies means M-KOPA is well equipped to hedge the risk of foreign exchange in its funding structure."

Anneke Lunde, executive of sustainable finance at Standard Bank Corporate and Investment Banking, said that the move is in line with the bank's aim to drive sustainable growth for Africa.

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