Japanese multinational, Sumitomo Corporation [in Japanese], has invested in M-Kopa. The deal was announced on December 18, 2018, though the exact amount, as well as other details about the deal, weren't disclosed. But, Sumitomo will take a corporate minority in the pay-as-you-go solar company.
Sumitomo already has operations across Africa. Yet - with this investment - they will strengthen their position on the continent.
"Sumitomo Corporation aims to launch a new business related to distributed power sources," they wrote. "An estimated 1.1 billion people live in non-electrified areas around the world, with over 600 million in Sub-Saharan Africa."
The multinational will also help M-KOPA achieve further growth. This will be through "capitalizing on its expertise in the construction and operation of power generation plants".
"While also utilizing the findings and know-how gained in various other business domains. Thereby contributing to the delivery of sustainable clean energy to more people."
Early last year, M-Kopa raised more than $10 million from a group of investors. FinDev Canada was among the investors and it is the one that put in the $10 million. CDC led the round with other existing shareholders also participating in the round. This included; Generation Investment Management and LGT Venture Philanthropy. Dave Easton from CDC joined M-KOPA's board of directors.
To date, the company has raised at least over $200 million in a mixture of funding. This puts it among the most funded companies in Africa founded less than a decade ago.
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Founded in 2011, M-KOPA - which employees over 800 people - also offers credit financing. This is usually for upgrades to more productive assets. These include more lights, energy-efficient cooking stoves, internet-enabled smartphones, and water storage tanks. M - KOPA, a leading company in the PAYG type SHS industry, has over 600,000 units sold in Kenya and Uganda.
International corporations are starting to express interest in Africa. One of the ways is acquiring a minority stake in promising startups and tech companies.
In November 2018, BitPesa - a digital foreign exchange - secured $5 million from Sompo Holdings. Another Japanese corporation. While the French spirits group, Pernod Ricard, also bought a minority stake in Jumia Group.