M-KOPA Nears $400 Million ARR, Surpasses 5 Million Customers Amidst Economic Challenges

M-KOPA, a Kenyan-based pay-as-you-go asset financing platform, is on track to achieve an annual revenue rate (ARR) of $400 million by the end of the year—a major milestone in its journey. This growth comes despite the challenging economic conditions across Africa. By the end of 2023, the digital financial services company recorded $248 million in ARR and reached 4 million customers.

According to M-KOPA’s recently released 2024 Impact Report, the company now boasts over 5 million customers in Kenya alone. Across all its markets, M-KOPA has reached over 5 million underbanked Africans and has created more than 16,000 jobs in Kenya, significantly contributing to reducing unemployment in the country.

Mayur Patel, M-KOPA’s Chief Commercial Officer (CCO), highlighted the company’s resilience amidst economic uncertainties, noting its stable loss rates over the past four years despite rapid scaling and macroeconomic fluctuations. “Our loss rates have been remarkably stable, regardless of changes in the macro environment. This is a testament to the fact that financed phones are a productive asset in people’s lives and a key part of how everyday earners generate their income and participate in the digital economy,” Patel said.

Founded 13 years ago, M-KOPA enables customers to access smartphones and other essential assets through flexible digital micropayments. Customers make daily payments, with costs spread across 365 days. This innovative approach has driven profitability in its major markets, including Kenya, Uganda, Nigeria, and Ghana, while South Africa, its fastest-growing market, has emerged as a key contributor to revenue growth.

With over $1.5 billion in credit disbursed, M-KOPA attributes its success to improved pricing strategies, expansion into high-value markets with stronger local currencies, and its ability to attract underbanked individuals. In the past 15 months alone, the company added 2 million new users, including 1 million in the last six months.

M-KOPA’s growth trajectory is also fueled by upselling and cross-selling higher-value products, such as microloans, electric bikes, data bundles, and health insurance, to customers with strong repayment histories. The company processes an impressive 12 repayments per second, demonstrating its operational efficiency.

As M-KOPA nears its $400 million revenue target, the company remains committed to driving financial inclusion while maintaining profitability. Its growing impact is empowering millions across Africa to access essential tools and services, fostering economic participation, and improving livelihoods despite challenging economic conditions.