M-KOPA Eyes $400 Million Revenue Milestone Amid African Expansion

Jesse Moore, M-KOPA CEO

African fintech M-KOPA is on track to exceed $400 million in annual revenue by the end of the year, fueled by its pay-as-you-go asset financing platform. The London-based company, which provides smartphones and other productive assets through daily digital micropayments, serves 5 million underbanked customers across sub-Saharan Africa.

Despite economic challenges such as inflation and weakening currencies, M-KOPA has thrived, achieving profitability in Kenya, Uganda, Nigeria, and Ghana. South Africa, its newest market, has become its fastest-growing. With 4 million customers and $248 million in annual revenue reported last year, its growth trajectory has remained strong.

While M-KOPA’s default rate of 10% is higher than U.S. benchmarks, it is lower than regional averages, highlighting the sustainability of its model. The company credits its stable loss rates to the essential role of financed phones in driving income generation and digital participation for daily earners.

M-KOPA attributes its success to improved pricing, expansion into higher-value markets like South Africa, and a growing customer base, with 1 million users added in six months. It has also expanded into microloans, electric bikes, and health insurance, leveraging repayment patterns to upsell products.

The fintech’s ability to build a profitable model while addressing Africa’s financial inclusion challenges sets a compelling precedent for startups in emerging markets.

Source: Tage Kene-Okafor / TechCrunch