- M-KOPA, a fintech serving 5 million Africans, is set to surpass $400 million in revenue despite economic challenges such as inflation and currency devaluation.
- The company’s success is driven by its 30,000-strong salesforce and smartphone assembly in Nairobi, making it one of Africa’s largest fintechs.
What happened
M-KOPA, the African fintech offering pay-as-you-go asset financing, is on track to exceed an annual revenue of $400 million by the end of the year. Serving 5 million underbanked Africans, the company has grown its customer base from 4 million last year, despite challenges like inflation and currency devaluation.
The 13-year-old firm provides smartphones and other essential assets through daily micropayments, making ownership possible for those with irregular incomes. Operating in Kenya, Uganda, Nigeria, and Ghana, M-KOPA has recently expanded into South Africa, where it has experienced rapid growth. The company is now profitable in these markets, with a loss rate of around 10%, which it considers manageable in the current economic climate.
A major factor behind M-KOPA’s success is its large 30,000-strong direct salesforce—the largest in sub-Saharan Africa. These agents sell and distribute products door-to-door. The company has also boosted smartphone sales through its Nairobi-based assembly plant. Since its launch, M-KOPA has sold over 1.5 million M-KOPA X-Series smartphones, which provide access to other digital services.
M-KOPA has shifted focus from solar power systems to electric vehicles and smartphone assembly. This change aligns with its goal of offering products that deliver real economic value to customers. With $1.5 billion in credit deployed and backing from investors such as Sumitomo and Standard Bank, M-KOPA has become one of Africa’s largest fintechs.
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Why it is important
M-KOPA’s success is significant for several reasons. First, it addresses the financial needs of Africa’s underbanked population, offering accessible financing through daily micropayments. With over 5 million customers, M-KOPA is filling a crucial gap, particularly in countries where many people have irregular incomes and limited access to traditional credit.
Second, the company’s growth, despite economic challenges such as inflation and currency devaluation, highlights its resilience. M-KOPA’s ability to scale rapidly, especially in South Africa, shows its business model is adaptable and sustainable.
Additionally, M-KOPA’s large 30,000-strong direct salesforce is key to its success. This vast network enables the company to distribute products door-to-door, making its services even more accessible. With investments and a shift towards electric vehicles and smartphones, M-KOPA is well-positioned to continue driving economic value in the region. Its $400 million revenue target marks a major achievement in Africa’s fintech landscape.
