After more than a decade of ambitious expansion across Africa, M-KOPA—one of the continent’s leading asset-financing pioneers—has reported its first-ever annual profit, signaling a major milestone in Africa’s maturing fintech ecosystem.
The Nairobi-based pay-as-you-go (PAYG) company posted a profit of KES 1.2 billion ($9.2 million) in 2024, recovering from a loss of KES 3.2 billion ($24.7 million) the previous year. According to its latest filings in the United Kingdom, M-KOPA’s revenue surged 66% to KES 53.7 billion ($416 million), marking one of the sharpest growth spikes ever recorded by a Kenyan startup.
“Achieving profitability for the first time in 2024 reflects our continued commitment to building a long-term, impactful, and sustainable business,” M-KOPA said in a statement.
A decade of persistence pays off
Founded in 2011 by Nick Hughes and Jesse Moore, both former Vodafone executives, M-KOPA began by selling solar home systems on credit to low-income families excluded from formal banking. Over time, the company evolved into a comprehensive digital financial services platform, offering smartphone financing, cash loans, and insurance to millions across Kenya, Uganda, Nigeria, South Africa, and Ghana.
The company’s filings attribute the turnaround to a mix of top-line growth, cost discipline, stronger credit underwriting, and enhanced portfolio management. “The Group experienced continued strong demand for its core product lines and financial services,” M-KOPA noted, emphasizing that operational efficiency and improved repayment systems were central to its profitability shift.
Smartphones: M-KOPA’s new growth engine
At the heart of M-KOPA’s transformation lies its smartphone financing business, which has quickly become the company’s biggest revenue driver. Leveraging its proprietary credit-scoring technology—which assesses repayment capacity using mobile usage patterns, airtime data, and transaction histories—the company has been able to underwrite small consumer loans at scale while keeping default rates relatively low.
Since 2022, M-KOPA has partnered with Samsung and Nokia to provide pay-as-you-go smartphones that can be unlocked through incremental payments. Customers typically make a small initial deposit, then gain access to the device via daily or weekly installments, a model that has expanded access to digital tools for thousands of low-income earners.
The firm also operates a smartphone assembly plant in Nairobi, allowing it to localize production, lower costs, and speed up delivery. This move has not only boosted profitability but has also created jobs in Kenya’s growing tech manufacturing ecosystem.
“We saw that mobile phones were the gateway to financial inclusion,” said Mayur Patel, Managing Director of M-KOPA Fintech. “Once customers have a phone, they can access loans, insurance, and digital payments. It’s a platform for economic empowerment.”
Investors reward discipline amid funding slowdown
M-KOPA’s profitability marks a defining moment for Africa’s fintech landscape, especially at a time when global investors are increasingly demanding self-sustaining growth. The post-2022 funding slowdown forced many startups to prioritize cash flow and sustainable margins over aggressive expansion.
With more than $250 million raised in equity and debt, M-KOPA counts heavyweight investors such as Generation Investment Management, Lightrock, and British International Investment (formerly CDC Group) among its backers. These investors have long bet on the company’s ability to turn its PAYG model into a scalable and profitable business—a goal now realized.
Analysts say the company’s 2024 results could reshape how investors view Africa’s buy-now-pay-later (BNPL) model, which has faced skepticism due to high default rates and operational challenges. M-KOPA’s success demonstrates that with data-driven credit analytics and tight cost control, the model can work sustainably across developing economies.
The next chapter: Scaling responsibly
As M-KOPA transitions from survival to stability, its leadership is expected to focus on expanding its financial services portfolio, improving customer retention, and deepening presence in West Africa. The company is also exploring green finance opportunities tied to electric mobility and clean energy access, areas that align with its original mission.
For CEO Jesse Moore, the milestone is not just financial—it’s personal. “This is a validation of 14 years of belief that affordable access to technology can change lives,” he said. “Profitability means we can now invest even more confidently in the customers we serve.”
M-KOPA’s rise from a solar startup to a profitable pan-African fintech underscores a wider shift across the continent: innovation is maturing, scale is achievable, and sustainability is no longer an afterthought—it’s the business model itself.
