M-KOPA Approaches $400M Revenue, Surpasses $1.5 Billion in Credit Disbursed

M-KOPA, a leading pay-as-you-go asset financing platform, is on track to achieve a major milestone: a $400 million annual revenue run rate (ARR) by the end of 2024. Despite Africa’s challenging economic landscape, the fintech ended 2023 with $248 million ARR and 4 million customers. Its latest 2024 Impact Report reveals even more impressive growth, with M-KOPA now serving over 5 million customers and disbursing more than $1.5 billion in credit across its key markets.

Key Markets and Profitability Milestones

Operating in Kenya, Uganda, Nigeria, Ghana, and more recently South Africa, M-KOPA has maintained profitability in its primary markets. South Africa has emerged as its fastest-growing market, further expanding the company’s reach into higher-value markets with stronger currencies.

The company has also contributed significantly to employment, creating 16,000 jobs in Kenya alone and enhancing financial inclusion across Africa.

How M-KOPA Keeps Losses Low Amid Inflation

M-KOPA has consistently kept loss rates low despite inflationary pressures and economic volatility in its operating markets. According to Chief Commercial Officer Mayur Patel, this is because M-KOPA’s financed smartphones and other productive assets empower users to generate income and participate in the digital economy.

“Our loss rates have been remarkably stable over the last four years as the company has rapidly scaled, regardless of macroeconomic changes. This demonstrates the value of productive assets like financed phones in the daily lives of everyday earners,” Patel stated.

Innovative Financing Model Drives Growth

Founded in 2011 by Jesse Moore, Chad Larson, and Nick Hughes, M-KOPA leverages an innovative financing model where users make daily micropayments for smartphones and other assets. These repayments align with the cash flow of underserved individuals, most of whom earn daily incomes and often cannot access traditional credit or financial services.

M-KOPA’s rapid growth is reflected in its ability to onboard customers faster than ever. It added 1 million users in six months and 2 million in the last 15 months. Its 2024 Impact Report highlights how 92% of customers say M-KOPA has made technology more affordable, with 80% reporting an improved quality of life and 70% crediting M-KOPA for helping them achieve financial goals.

Expanding Financial Inclusion in Africa

With 75% of adults in sub-Saharan Africa financially excluded, M-KOPA’s model provides a lifeline for millions. By making smartphones more accessible, the company is not only increasing digital access—2 million M-KOPA customers are first-time mobile internet users—but also improving gender inclusivity, with 40% of its users being women.

The company’s assembly plant in Kenya, which has produced over 1 million locally made phones, has significantly reduced costs and enhanced accessibility, demonstrating the scalability of its impact-driven model.

Funding and Financial Highlights

M-KOPA raised $250 million in funding last year, including $200 million in debt financing, with an additional $15 million secured earlier this year. Its $400 million ARR puts it among the largest fintechs in Africa by revenue.

Patel attributed this success to a unique approach that combines advanced technology stacks with on-the-ground distribution networks, enabling the company to reach the most underserved regions effectively.

Broader Impact on Africa’s Economy

M-KOPA’s model extends beyond financial inclusion, fostering entrepreneurship and employment opportunities. Its extensive agent network, with over 30,000 active agents, ensures even remote communities can access its products. This grassroots approach has helped scale M-KOPA’s operations while maintaining a personal connection with customers.

The Future of M-KOPA

As it scales further, M-KOPA continues to expand into higher-value markets and introduce new products. Its offering now includes microloans, electric bikes, data bundles, and health insurance, adding value for customers who consistently meet repayment plans. With its growing customer base and innovative model, M-KOPA is well-positioned to solidify its role as a leader in Africa’s digital financial services sector.