M-KOPA Transforms from Smartphone Seller to Financial Services Provider

M-KOPA, the Nairobi-based asset financing company, has successfully evolved its business model beyond selling smartphones on credit. The company now leverages repayment data from these devices to offer digital loans and other financial services to underserved populations across Africa.

Since 2020, M-KOPA has built a reputation for enabling millions of Africans to access smartphones through installment plans. It has deployed over $2 billion in credit to nearly 10 million customers—a testament to its impact on digital inclusion. As CFO Faraimose Kutadzaushe explained, “We’re selling more than just a phone; we’re providing access to financial tools that empower our customers.”

The Untapped Potential of Cash Flow-Based Lending

The World Bank reports that only 25% of adults in low-income African countries use formal credit channels, while 35% rely on informal borrowing. This presents an opportunity for cash flow-based lending models—which M-KOPA has embraced—that assess creditworthiness through digital payment histories.

How Smartphone Repayments Build Credit Profiles

When customers make daily payments for their smartphones, each transaction generates valuable data points that build a proprietary credit profile. According to Kutadzaushe, “30 days of consistent payments provide more reliable credit signals than traditional methods can offer.”

This approach allows M-KOPA to extend affordable digital loans to first-time borrowers—expanding financial inclusion while building customer loyalty.

Key Highlights:

• M-KOPA receives over one million repayments daily and acquires 10,000+ new customers\n* 50% of customers live on less than $5.50 per day\n* 38% are accessing formal credit for the first time through M-KOPA\n* Nigeria has become its fastest-growing market with significant cash lending uptake\n* AI-driven risk models keep portfolio loss rates between 10-12%\n* The company reported $9.2 million in profit after a $24.7 million loss in the previous year