TLDR
- Kenyan asset-financing startup M-KOPA has reported its first-ever profit after more than a decade of operations across Africa
- The Nairobi-based company posted a KES 1.2 billion ($9.2 million) profit in 2024, reversing a KES 3.2 billion ($24.7 million) loss in 2023
- Founded in 2011 to provide solar home systems on credit, M-KOPA has since evolved into a digital finance platform offering smartphones, loans, and insurance
Kenyan asset-financing startup M-KOPA has reported its first-ever profit after more than a decade of operations across Africa.
The Nairobi-based company posted a KES 1.2 billion ($9.2 million) profit in 2024, reversing a KES 3.2 billion ($24.7 million) loss in 2023, according to filings in the UK. Revenue surged 66% to KES 53.7 billion ($416 million), driven by higher demand for smartphones and digital financial services.
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Founded in 2011 to provide solar home systems on credit, M-KOPA has since evolved into a digital finance platform offering smartphones, loans, and insurance to millions of customers in Kenya, Uganda, Nigeria, South Africa, and Ghana.
The company credited its turnaround to top-line growth, tighter cost control, stronger credit underwriting, and better portfolio management. M-KOPA’s smartphone financing partnerships with Samsung and Nokia, coupled with a local assembly plant in Nairobi, have become major revenue drivers.
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Key Takeaways
M-KOPA’s return to profitability marks a defining moment for Africa’s pay-as-you-go and digital credit ecosystem. Long seen as a test case for inclusive asset financing, the company’s success demonstrates how fintechs can achieve both scale and sustainability amid tighter funding conditions. As global investors push African startups to prioritize profitability over growth, M-KOPA’s performance provides a potential blueprint — combining alternative data for credit scoring, disciplined cost management, and product diversification. Its smartphone-led lending model has strengthened cross-selling opportunities in cash loans and micro-insurance, while building customer loyalty in frontier markets. With over $250 million raised from investors such as Generation Investment Management, Lightrock, and British International Investment, M-KOPA’s profit milestone could reset investor sentiment toward Africa’s fintech and BNPL sectors, proving that large-scale, impact-driven finance models can deliver real returns.