MICROCAPITAL BRIEF: MPower Secures $430k in Equity for Lease-to-own Solar Power in Africa via Crowdfunding Platform Crowdcube

MPower, a Switzerland-based provider of solar products in Africa, recently raised GBP 350,000 (USD 430,000) via British crowdfunding platform Crowdcube, through which retail investors purchased a total of 5.84 percent of the firm’s equity. MPower plans to use the fresh funds to upgrade its software, scale up within its current areas of operation and expand into three new markets by the end of 2020. MPower is has 2,000 end-users in Cameroon, Togo and Zambia as of 2020. The firm builds its software in Spain and has supply-chain networks in China.

Founded in 2017, Zurich-based MPower works with local partners to supply end-users with solar collectors and compatible appliances, such as lights and fans. The company uses in-house software to help these partners digitalize their operations as well as to evaluate the creditworthiness of customers. Customers who qualify may purchase equipment through lease-to-own agreements with terms as long as three years.

Founded in 2011, Crowdcube is a virtual marketplace that connects entrepreneurs with small-scale investors. During the third quarter of 2019, it helped 58 businesses raise GBP 59 million (USD 72 million). During the same quarter, it generated GBP 2.2 million (USD 2.7 million) in revenue, a 38-percent increase compared to the same quarter of 2018.

By Ng Chee Meng, Research Associate

Sources and Additional Resources

Crowdfund Insider article on MPower
https://www.crowdfundinsider.com/2020/03/159493-update-zurich-fintech-mpower-set-to-close-crowdcube-round-with-more-than-350000-in-funding-secured/

MPower homepage
https://www.mpower.es

MPower LinkedIn page
https://www.linkedin.com/company/mpower-africa/about/

UK investor magazine article on MPower
https://ukinvestormagazine.co.uk/clean-energy-startup-mpower-reaches-overfunding-on-crowdcube/

Access Bank Gambia webpage on MPower loans
https://gambia.accessbankplc.com/Personal-Banking/Loans/MPower-Loans-(for-Salary-Accounts).aspx

Crowdcube homepage
https://www.crowdcube.com

Crowdcube shareholder statement third quarter, 2019
https://cdn-content-hub.crowdcube.com/files/content-images/shareholder-update-2019-Q3.pdf

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