M-KOPA, a pioneering African fintech supported by over 30,000 direct sales agents, is on track to exceed $400 million in annual revenue rate (ARR) by year-end. Serving 5 million underbanked Africans through its pay-as-you-go asset financing platform, M-KOPA demonstrates resilience and innovation in challenging economic conditions.
Impressive Growth Amid Economic Challenges
Headquartered in London, M-KOPA concluded 2023 with 4 million customers and $248 million in ARR. Despite currency devaluations and inflationary pressures, the fintech has thrived, achieving profitability in Kenya, Uganda, Nigeria, and Ghana. Its South African operations, launched a year ago, now lead growth, driven by strong consumer demand.
Scaling Impact Through Productive Assets
M-KOPA provides smartphones and other productive assets through a daily installment model spread over 12 months. Customers pay an initial fee of $25–$30, followed by daily payments, fostering credit histories while enhancing digital inclusion.
Addressing Challenges, Sustaining Confidence
Though default rates hover at 10%, M-KOPA maintains financial stability, emphasizing the productive value of financed phones in income generation. “Our loss rates have been stable over four years, reflecting our model’s robustness,” said Mayur Patel, M-KOPA’s fintech president.
Expanding Credit Access and Product Offerings
M-KOPA’s success lies in a vast agent network, smartphone assembly initiatives, and upselling strategies. Its Nairobi-based plant has produced 1.5 million X-Series smartphones. The fintech also finances electric bikes and offers microloans and health insurance, diversifying revenue streams.
With $1.5 billion in credit deployed and recent funding boosts, M-KOPA cements its position as one of Africa’s leading fintechs, merging innovative technology with robust offline distribution to empower everyday earners.
Source: Inclusifund
