Clean energy start MPower has reached overfunding on Crowdcube after securing more than £300,000 to expand its Africa focused fintech and clean energy business.
The company is focused on solar powered products that are backed by their software, data solutions and a financing model that supports a distribution network.
MPower provides plug & play solar powered products such as refrigerators and water pumps to rural communities in Africa and have already reached over 2000 end-users in Africa with operations in Togo, Cameroon and Zambia.
MPower operates a B2B business model and has established a distribution network which have taken advantage of MPower’s turn-key solutions.
Whilst MPower is making a positive environmental impact, it has combined this with a positive financial impact through a ‘lease-to-financing’ model that empowers bossinesses and individuals.
Africa lacks a standardised and broad credit rating system for individuals so MPower has set about developing its own criteria which measures and approves individuals using Big Data.
Not only does this provide rural communities with access to finance, it also helps MPower reduce their credit risk.
This will be crucial as MPower scales and targets the $70 billion African power market. MPower have forecast their model can capture $349 million of this market providing investors in MPower with significant opportunity to gain exposure to the African power delivery market.
The company was established in 2017 and has already earned a cumulative revenue of £550k.
This was largely from operation in Togo, Cameroon and Zambia and there are near-term plans for expansion in Namibia, Cameroon & Togo.
Over the medium-term, MPower has identified Senegal, DRC, Zimbabwe, Ghana, Ethiopia as potential countries for expansion.
MPower secured £234,540 from an institution as part of the Crowdcube fundraise which will add to prior investment from Innoenergy, Technology Fund and UK-Aid / Energy4Impact.
MPower had an initial Crowdcube target of £300,000 which it comfortably meet before going into overfunding, where investors can still invest.
With stock markets moving through a period of volatility, MPower provides an opportunity in a high growth emerging market uncorrelated with traditional shares.