M–KOPA Kenya Limited, a Nairobi-based start-up, came up with M-KOPA Solar, an off-grid energy solution that leverages on ground-breaking innovative technologies and a unique financing and operational model and is targeted at the poor and the bottom of the pyramid segment. The start–up, which has a potential of global scale, is adding hundreds of new homes each week and has reached over 200,000 homes within 3 years of its commercial launch.

M–KOPA Solar, offered on a unique PAY-AS-YOU-GO (PAYG) model, would not have been possible without the company’s partnership with some well-known firms, each a leader in its own field. This partnership helped bring solar innovation, mobile technology, and asset financing under one roof to solve the real world problems of millions of poor people, impacting their lives and improving their social and economic conditions while conserving the environment.

Building on its successful journey, the founders of M-KOPA Solar are aiming to achieve the audacious goal of lighting up a million homes by 2017. Despite the many challenges, they are passionately working on alternatives which they hope will help them reach the target.

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Understand the need for unique business models for social entrepreneurs while devising solutions for the bottom of the pyramid and analyze the unique business model and process innovation of M-KOPA Solar for offering cost-effective green electricity under a PAYG model to the rural poor in Kenya.
	Debate the need for and flexibility of asset financing under the PAYG model which is key to the growth and sustainability of M-KOPA Solar.
	Debate the issues and challenges involved in developing and testing and commercializing an idea.
	Discuss the important role played by collaboration and partnership in offering a solution to the bottom of the pyramid segment.
	Explore the social, economic, and environmental impact of M-KOPA Solar
	Analyze M-KOPA Solar’s factors of success and the need for business models that leverage on ground-breaking innovative and emerging technologies.

Contents

INTRODUCTION

NECESSITY AS OPPORTUNITY

ORIGIN OF M-KOPA SOLAR

DEVELOPING A BUSINESS MODEL AROUND AN IDEA

OPERATIONAL FRAMEWORK

ANALYZING AND UNDERSTANDING CONSUMERS FOR A BETTER BUSINESS MODEL

IMPACTING LIVES

WORKING ON 2017 CHALLENGE

EXHIBITS

Keywords

M-KOPA,PAY-AS-YOU-GO (PAYG) model,M-PESA,Safaricom,Single Point Partners,Eseye Limited,d.light energy private limited,Machine to Machine (M2M) Technology,M-KOPAnet

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