Herbert Smith Freehills (HSF) advised Japanese investment company Sumitomo Corporation on its USD36.5 million investment in M-Kopa, an African fintech platform providing financial products to underbanked customers.
Joseph Fisher, a partner at HSF in Tokyo, led the team with the support of associate Jarry Tay in Kuala Lumpur.
This is Sumitomo’s second investment in M-Kopa after its initial USD5 million in 2018, signalling the company’s strategy to expand its reach in Africa.
M-Kopa has recently secured a capital injection that includes USD202 million in debt and USD55 million in equity, where Sumitomo took the lead as a strategic investor with its USD36.5 million in equity.
Standard Bank Group in Africa provided M-Kopa with a more than USD100 million loan, with the International Finance Corporation lending USD65 million.
This funding will be used to grow the company’s smartphone services, expand new markets and extend its financial products.
