Finnfund invests $3.4m in KaiOS Technologies to bring affordable mobile connections to Sub-Saharan Africa
Finnfund has invested $3.4 million in KaiOS Technologies, maker of KaiOS, to bring affordable mobile connections to Sub-Saharan Africa. It has been estimated that 3.4 billion people in emerging markets do not use internet despite living in areas with mobile broadband coverage.
One of the greatest barriers to mobile internet adoption is the cost of a smartphone, often being more than 20% of monthly income. KaiOS brings mobile connectivity to millions of people in emerging markets by providing an operating system that allows manufacturers and operators to make KaiOS powered phones affordable.
“With this investment, KaiOS can expand into new markets in Sub-Saharan Africa”, says Sebastien Codeville, CEO and co-Founder of KaiOS Technologies. “We are happy to partner with an investor like Finnfund who share our vision of how important it is to boost digitalisation in Africa.”
“The investment in KaiOS is yet another important step in connecting the unconnected”, says Finnfund’s Investment Manager Kuutti Kilpeläinen. “KaiOS has proved that it can solve the affordability problem and we are proud to join the group of investors who all share the same ambitious goal of closing the digital gap.”
Finnfund’s investment in KaiOS is classified as a 2X Challenge eligible gender investment as it supports women to close the digital divide that still exists across lower-middle income countries. KaiOS not only brings a more affordable device to the market but they also host applications and content specifically targeting women and girls. These are related to for example sexual and reproductive health.
Boosting digitalisation is at the core of Finnfund’s strategy. An increase in digital connectivity supports economic growth and facilitates inclusive access to critical services in finance, education and health, and provides possibilities for small businesses to connect with global value chains.
