MoPhones, a Kenyan refurbished smartphone financing platform backed by Speedinvest, has secured a Non-Dilutive Investment in Callable Equity (NICE) facility of up to $2 million from STV, the Riyadh-headquartered technology investment firm.
The deal makes MoPhones the first African company to receive the instrument, which STV has previously deployed into GCC-based companies including Tabby, Invygo and Stake. STV has committed over $65 million through the NICE structure to date.
NICE is structured as callable equity: the investor purchases the right to receive equity in the company, while the company retains the option to buy back those equity rights over time through pre-agreed, revenue-linked repayments. If the company is unable to make a repayment, that tranche converts into equity rather than triggering a default. The structure carries no covenants restricting how the company deploys capital and is Sharia-compliant, a feature that matters for capital flows between the Gulf and Africa.
FWDstart covered the mechanics of NICE and other non-dilutive structures reshaping Gulf startup financing in detail last year.
"Access to enabling non-dilutive capital is transformative for a platform like ours," said Sjoerd Nikkelen, CEO and co-founder of MoPhones. "The NICE facility allows us to invest aggressively in growth, be it through deeper penetration in Kenya or expansion into new markets, without sacrificing equity at a stage where speed and simplicity matter."
MoPhones, co-founded by Nikkelen and Nate Heller and backed by Speedinvest since 2023, offers instalment-based financing on high-quality refurbished smartphones in Kenya, combining technology-driven credit underwriting with a distribution network spanning physical stores and agent partnerships.
Nikkelen added that the NICE facility complements the company's broader financing strategy of tapping African capital markets directly for receivables financing through securitisation. "Together, these tools allow us to build scalable and cost-effective financing that ultimately benefits consumers while advancing circular electronics across the continent."
"MoPhones marks our first investment beyond our core markets and reinforces that NICE is not geography-dependent," said Ihsan Jawad, STV general partner and NICE fund manager. "The callable equity structure works wherever there is a strong equity story, underpinned by sound unit economics and aligned, committed founders and stakeholders."
The facility lands shortly after Speedinvest launched a dedicated Africa fund anchored by a €40 million commitment from EIB Global. MoPhones is among the firm's African portfolio companies alongside Nigerian digital lender FairMoney, Egyptian earned-wage-access platform Khazna and mobility fintech Moove.
