After more than ten years of sustained investment and growth across the continent, Nairobi-based asset-financing startup M-KOPA has achieved profitability for the first time. According to its latest filings in the United Kingdom, the company posted a profit of KES 1.2 billion (approximately $9.2 million) in 2024, a dramatic turnaround from a KES 3.2 billion ($24.7 million) loss recorded the previous year.
This milestone was accompanied by a 66% surge in revenue, reaching KES 53.7 billion ($416 million), one of the most significant growth stories 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 said in a statement.
Founded in 2011 by former Vodafone executives Nick Hughes and Jesse Moore, M-KOPA began by offering solar home systems on credit to low-income households. Over the years, it has evolved into a comprehensive digital finance platform, now providing smartphones, cash loans, and insurance products to millions of customers across Kenya, Uganda, Nigeria, South Africa, and Ghana.
M-KOPA’s profitability was driven by strong demand, tighter cost controls, and improved credit practices. Strategic investments in credit analytics, product diversification, and regional expansion also played a key role, as confirmed by MD Mayur Patel last year.
A key driver of M-KOPA’s recent success has been its focus on smartphone financing, a segment it has aggressively pursued since 2022. By leveraging alternative data, such as mobile usage patterns and repayment behavior, the company has been able to underwrite small consumer loans with relatively low default rates.
M-KOPA has partnered with major manufacturers like Samsung and Nokia to offer pay-as-you-go smartphones, allowing customers to make a small initial deposit and unlock their devices through incremental payments. This model has not only boosted revenue but also served as a gateway to other digital financial services, including cash loans and health insurance.
To support this strategy, M-KOPA established a smartphone assembly plant in Nairobi, further localizing its operations and improving supply chain efficiency. Over the years, M-KOPA has raised more than $250 million in equity and debt funding from prominent investors such as Generation Investment Management, Lightrock, and British International Investment (formerly CDC Group).
Its 2024 profitability milestone comes at a time when investors are increasingly demanding clearer paths to sustainability from African startups. With the fintech funding boom cooling, companies that can demonstrate self-sustaining business models are gaining favor.
M-KOPA’s performance could reshape investor sentiment toward buy-now, pay-later (BNPL) models in Africa, offering a compelling case for how inclusive finance and tech-driven lending can scale profitably across emerging markets.
