After over a decade of investment and expansion across Africa, M-KOPA has finally turned a profit.
The Nairobi-based asset-financing startup reported a profit of KES 1.2 billion ($9.2 million) in 2024, bouncing from a loss of KES 3.2 billion ($24.7 million) the previous year, according to its latest filings in the United Kingdom. Revenue jumped 66% to KES 53.7 billion ($416 million), marking one of the strongest growths in Kenya’s startup ecosystem.
“Achieving a profit for the first time in 2024 reflects our continued commitment to building a long-term, impactful, and sustainable business,” M-KOPA told TechCabal in a statement.
The turnaround marks a significant turning point for one of Africa’s most closely watched startups, viewed as a test case for the pay-as-you-go model. Founded in 2011 to provide solar home systems on credit to low-income households, M-KOPA has evolved into a full-fledged digital finance platform offering smartphones, cash loans, and insurance products to millions of customers across Kenya, Uganda, Nigeria, South Africa, and Ghana.
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“The Group experienced continued strong demand for its core product lines and financial services, leading to a 66% increase in revenue,” M-KOPA said in its filings. “The shift to profitability was driven by strong top-line growth, disciplined cost control, strengthened credit underwriting, and enhanced portfolio management practices.”
In November 2024, Mayur Patel, MD of M-KOPA Fintech, told TechCabal that the company was on track to profitability after sustaining investments in credit analytics, product diversification, and regional expansion.
Betting on smartphones
The startup’s ability to underwrite small-ticket consumer loans using alternative data such as mobile usage and repayment patterns has helped it grow its customer base while keeping default rates low.
Since 2022, the company has focused on smartphone financing, partnering with manufacturers such as Samsung and Nokia to offer pay-as-you-go devices. It has also established an assembly plant in Nairobi.
The model enables customers to pay a small deposit and unlock the phone through subsequent payments. This strategy has boosted revenue and expanded M-KOPA’s other digital services, including cash loans and health insurance.
Founded in 2011 by former Vodafone executives Nick Hughes and Jesse Moore, M-KOPA has raised over $250 million in equity and debt from investors, including Generation Investment Management, Lightrock, and British International Investment (formerly CDC Group).
The milestone comes at a time when investors are demanding clearer paths to profitability from African startups. The funding boom that once flooded fintechs has cooled, and companies that can demonstrate self-sustaining models are standing out.
Its 2024 results could change investors’ views of Africa’s buy-now, pay-later (BNPL) startups.
Editor’s note: This story has been updated with a statement from M-KOPA.
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