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M-KOPA Attains $400 Million in ARR Through Commitment to Financial Inclusion and Asset-Based Funding
M-KOPA Attains Millions in ARR: M-KOPA, a fintech company targeting underserved African markets, has reached $400 million in annual recurring revenue (ARR) by using an innovative asset-financing model.
It provides pay-as-you-go access to essential goods like smartphones, solar kits, and financial services.
M-KOPA Attains Millions in ARR
The company leverages mobile technology and data-driven insights to offer affordable repayment plans, bridging the gap for the unbanked population.
President and MD Fintech Mayur Patel told TechCrunch in an interview: “The 13-year-old company offers smartphones and other “productive assets” through flexible digital micropayments, where users pay daily based on the whole cost of the item divided up by 365 days. We have hit profitability since last year across four countries: Kenya, Uganda, Nigeria, and Ghana. South Africa, where it opened around a year ago, is its fastest-growing market. Also, we are driving financial inclusion around Africa.”
The milestone highlights M-KOPA’s role in driving financial inclusion, creating economic opportunities, and empowering users through technology. Its growth reflects the rising demand for scalable, inclusive financial solutions.
Also Read: M-KOPA Reaches 5 Million Customers Across Five African Countries
M-KOPA’s Unique Growth Process In Africa
According to BusinessdailyAfrica, M-KOPA’s growth comes with a caveat. Default rates, it said, are around 10% — slightly lower than regional bank averages but higher than U.S. consumer loan benchmarks.
That raises questions about long-term sustainability. However, after a decade in Africa’s expanding credit market, fintech believes it has shown how it will profit from those rates.
“Our loss rates have been remarkably stable over the last 4 years as the company has rapidly scaled, regardless of changes in the macro environment. This is a testament to the fact that financed phones are a productive asset in people’s lives and a key part of how everyday earners generate their income and participate in the digital economy,” the company said in a statement.
