M-KOPA Solar-Technology and Partnership for Sustainable Finance
With the support of grants and equity investment provided by the Shell Foundation (UK), DOEN Foundation (NL) and dob equity (NL), SPP endeavored to test the concept of M-KOPA Solar. The funding during the initial and pilot stage when the business model was getting formulated was valuable. This gave SPP the flexibility to test the project “Getting innovative flexible money early on is good,…” said Moore, Managing Director, M-KOPA Solar . The business model became a reality when SPP associated with leading technology partners Safaricom, Eseye Limited (Eseye), and d.light Energy Private Limited (d.light) ..
After successfully completing the trailing phase, M-KOPA Solar launched its commercial operations in June 2012. Since the commencement of its business, the customer base of M-KOPA grew rapidly, reaching 100,000 by the end of September 2014. The business was growing by 1000 new customers per week . M-KOPA Solar’s success attracted investors in a big way ..
M-KOPAnet, which was the back-end of M-KOPA Solar, processed various customer data. And this helped M-KOPA Solar to further refine its business model...
M-KOPA Solar had a significant impact on the social and economic lives of the people “I saw it can save you a lot of money, it’s improved my life, for now I don’t use kerosene anymore – I have my own light, and it’s bright” said John Kibet, a customer of M-KOPA Solar . The provision for lighting during night time improved the quality of life of the customers..
The success of M-KOPA Solar depended on its ability to overcome challenges. Keeping the costs low was one of the major challenges for the company. It found it difficult to find hardware at low costs. The development of necessary M2M technology accounted for the major portion of the cost in designing its business model. During the year 2013-14, the development of a simple M2M integration cost around $13 (KSh 1100) to $15 (KSh 1300) . The reduction in the cost of M2M technologies could provide for designing better and simpler business models. ..
Exhibit-I: About M-PESA
Exhibit II:M-KOPA Solar Sustainable Finance Model
Exhibit-III: List of Investors
Exhibit-IV: Product Specifications of M-KOPA Solar
Exhibit-V: Payment Plans
Exhibit-VI: Impact of M-KOPA Solar