M-KOPA expands financial accessibility across Africa through the sale of over a million smartphones, transforming these devices into vital financial tools.
M-KOPA, a leading African tech company, is revolutionising the digital economy by integrating financial services into its smartphones, providing underbanked populations with access to micro-loans, health coverage, device insurance, and other digital tools.
With a strong focus on practical needs, M-KOPA's strategy shifts from solar systems to smartphones, addressing the lack of credit, insurance, and essential digital tools for many Africans. The company has sold over a million branded smartphones within a year of launch, and they are now available in five African countries: Kenya, Uganda, Nigeria, Ghana, and South Africa.
M-KOPA's smartphones are deeply embedded within its ecosystem, offering devices through flexible installment plans. These devices are not just communication tools but also portable financial hubs, equipped with digital wallets, insurance, and side business tools.
Customers who make consistent repayments on their M-KOPA smartphones progressively gain access to more sophisticated financial services. M-KOPA's factory in Nairobi, Africa's highest-output smartphone assembly plant, has generated over 400 jobs and earned ISO 9001 certification.
Despite the significant scale achieved in asset financing, M-KOPA has not publicly shared specific profitability metrics for its smartphone business or detailed the repayment status of the 1 million devices sold. The company remains private about how many of those devices have been fully paid off.
The approach taken by M-KOPA resembles India's feature phone surge in the early 2000s, with embedded finance taking center stage. M-KOPA's strategy to control the hardware strengthens its grip on the customer, potentially serving as a blueprint for others.
However, M-KOPA's focus on practical needs and micro-finance spaces may face competition from other startups pursuing card infrastructure and crypto solutions. The company's goal is to transform smartphones into both communication devices and portable financial hubs, pivoting Africa's digital economy from heavy spending to measurable impact.
As of mid-2025, M-KOPA's current lineup includes the X20, M10, S34, and entry-level X2, with more models set to launch later this year. The smartphones are sold exclusively through M-KOPA's sales agent network.
While M-KOPA's milestone offers a valuable lesson for Africa's fintech landscape, focusing on practical needs and relatively limited competition in device accessibility and micro-finance, uncertainties remain about the company's smartphone business profitability and the number of fully paid-off devices.
[1] Source: TechCrunch, 2025 [3] Source: Forbes Africa, 2025
- M-KOPA's strategy of integrating financial services into smartphones is aiming to address the financial inclusion needs of underbanked populations within the African industry, offering digital tools like micro-loans, health coverage, and device insurance.
- Due to the success of M-KOPA's smartphone business, with over a million devices sold and available in five African countries, the company has played a significant role in providing essential digital tools and affordable financing options to many Africans.
- M-KOPA's smartphones, besides serving as communication tools, function as portable financial hubs, equipped with digital wallets, insurance, and side business tools for users.
- As M-KOPA continues to expand its smartphone lineup with devices like the X20, M10, S34, and the entry-level X2, and sells them exclusively through its sales agent network, questions about the profitability and repayment status of the devices sold persist, highlighting uncertainties in M-KOPA's smartphone business.
