M-KOPA’s Journey: Reaching 5 Million Customers and $1.5bn in Credit Expansion

In a significant milestone for financial and digital inclusion in Africa, M-KOPA, a pioneering fintech company, has announced that it has surpassed 5 million customers across Kenya, Uganda, Nigeria, Ghana, and South Africa. This growth comes alongside an impressive $1.5 billion in credit deployed, marking a major achievement in its mission to provide affordable financial services and unlock economic opportunities for Africa’s ‘Every Day Earners’ – the vast majority of adults who earn daily wages but struggle to access conventional financial products.

This achievement cements M-KOPA’s position as a leader in digital financing in emerging markets. By making smartphones embedded with financial services accessible through a pay-as-you-go model, M-KOPA has empowered millions of customers to improve their livelihoods through greater digital access, financial empowerment, and sustainability.

M-KOPA’s Growth and Expansion

Founded with a vision to provide financial inclusion through technology, M-KOPA’s expansion has been swift and far-reaching. In the last 15 months alone, the fintech onboarded 2 million new customers, increasing its total base to 5 million. This growth highlights M-KOPA’s successful expansion into new markets like South Africa while continuing to grow its presence in established markets like Kenya, Uganda, Nigeria, and Ghana.

The company’s financing model, which has now been tested and refined over a decade, allows customers to access smartphones without an upfront payment, making the technology affordable for a demographic that typically struggles to qualify for traditional financial services. Once connected to the digital economy, these customers are able to access a range of additional services—such as digital loans, insurance, and affordable data plans—unlocking new financial opportunities.

According to Jesse Moore, co-founder and CEO of M-KOPA, the company’s impact is only beginning: “We are thrilled to welcome our 5 millionth customer to M-KOPA this month. The scale of our operations and our positive impact on customers is what keeps us working hard to go even further. We’re just getting started; the opportunity for much larger impact and scale is right in front of us.”

Empowering ‘Every Day Earners’ Through Affordable Digital Access

M-KOPA’s core innovation lies in its ability to cater to Africa’s ‘Every Day Earners’—individuals who earn a daily income but often find themselves excluded from conventional financial services. In sub-Saharan Africa, where the World Bank reports that 75% of adults remain financially excluded, M-KOPA’s solution has provided a much-needed lifeline. The company’s financing model allows customers to purchase smartphones through daily repayments that align with their cash flow, making the service affordable and accessible.

This model also helps build a credit history for users. By analyzing rich payment data through AI-driven analytics, M-KOPA establishes creditworthiness for individuals who might otherwise be overlooked by traditional banks. This foundation allows customers to access additional financial services, such as lower-cost digital loans, device protection, affordable data bundles, and even medical insurance. These services have had a transformative effect on customers’ financial independence and quality of life.

Key Findings from M-KOPA’s 2024 Impact Report

M-KOPA’s 2024 Impact Report, conducted by the independent research agency Dalberg, highlights the profound social and economic impact the fintech has had on its customer base. Some of the key findings include:

• 92% of customers reported that M-KOPA’s financing made technology more affordable.
• 80% of customers reported an improved quality of life due to M-KOPA products.
• 70% of customers credited M-KOPA with helping them achieve their financial goals, demonstrating its substantial role in financial empowerment.
• 62% of customers used their M-KOPA product to generate income.
• M-KOPA has also contributed to digital inclusion, with 1.7 million customers gaining access to the mobile internet for the first time, and 40% of its customers are women.

One notable achievement is M-KOPA’s investment in local smartphone assembly. The company established the first and largest smartphone assembly facility in Kenya, which has produced over 1 million phones locally. This initiative not only reduces the cost of access to technology but also supports local employment and economic growth.

A Focus on Gender Inclusion

M-KOPA is also committed to closing the gender gap in smartphone ownership and digital access, as women are 25% less likely to own smartphones than men in Africa. The company has made strides in supporting female entrepreneurs and customers, and one of its key goals is to increase its female customer base to 50%. Through partnerships with organizations like Yale Inclusion Economics and Caribou Digital, and with support from the Bill & Melinda Gates Foundation, M-KOPA is researching and piloting new solutions to further support women’s financial and digital empowerment.

Building a Circular Economy and Promoting Green Products

As part of its commitment to environmental sustainability, M-KOPA is taking meaningful steps to reduce its carbon footprint. The company has established a circular economy for smartphones through its refurbishment facility in Kenya, which enables customers to purchase refurbished phones at a lower cost. By reusing devices, M-KOPA reduces raw material consumption and electronic waste, making digital access both affordable and sustainable.

The 2024 Impact Report further highlighted M-KOPA’s push towards electric mobility. With Africa facing a critical pollution problem from internal combustion vehicles, M-KOPA has introduced 1,500 electric motorbikes in Kenya. These motorbikes, which are more affordable to run and maintain, not only reduce CO2 emissions by 90% compared to traditional motorbikes but also save customers an average of $2.50 per day in fuel and maintenance costs. For the more than 1.8 million individuals working in Africa’s commercial motorbike sector, these savings represent a 30% increase in earnings, thereby improving financial well-being.

Impact on Communities and Future Plans

M-KOPA’s impact extends beyond its direct customers. Through the financial and digital inclusion of 5 million people, the company estimates that it has indirectly impacted the lives of 23 million individuals across Africa. This includes not just families but also communities benefiting from the increased digital and financial access that M-KOPA’s customers experience. Furthermore, the company has created significant employment opportunities with over 30,000 commission-based sales agents helping to distribute its products. These agents, many of whom come from underserved communities, use the opportunity to build financial independence and develop their skills.

Looking ahead, M-KOPA plans to continue expanding its product offerings and deepening its commitment to sustainability. The company is working to further scale electric mobility solutions and is focusing on ensuring that circularity is central to its smartphone supply chain. As it grows, M-KOPA remains committed to building pathways to prosperity for its customers while maintaining a climate-conscious approach.

Conclusion

M-KOPA’s innovative approach to digital financing has enabled millions of individuals across Africa to access technology, build credit, and improve their financial security. By leveraging AI-driven analytics, sustainable practices, and inclusive financial services, M-KOPA is reshaping the financial landscape in Africa. With its sights set on further growth and impact, the fintech is poised to play a critical role in advancing financial inclusion, digital access, and environmental sustainability on the continent.

As Jesse Moore stated, “We’re just getting started,” signaling that the potential for greater scale and impact remains vast, with M-KOPA at the forefront of unlocking economic opportunities for Africa’s underserved populations.