WORLD BIZ+
―Exploring the Reality of the Workplace Vol. 10―
Smartphone Financing is Transforming Lives in Africa:
A Kenyan Startup Takes on a Vast, Growing Market

In Kenya, one of East Africa's largest economies, many people – including self-employed and gig workers – operate without a fixed salary. Lacking stable income or credit history makes it difficult to open bank accounts or access loans, which can limit opportunities to secure capital for businesses or increase their income.

M-KOPA, a company specializing in smartphone-based finance, is addressing these challenges. Users can purchase digital devices through small daily payments via mobile money, building a credit history based on these payments. Through this track record, they gain access to financial services such as loans, expanding their options for business and income growth.

M-KOPA's unique approach goes beyond simply selling smartphones. By leveraging proprietary systems and technology built into its devices, the company collects and analyzes daily payment data. Based on their payment history, users are then offered additional digital financial services, such as loans and health insurance, all accessible through their smartphones.
Some M-KOPA users have utilized loans to purchase inventory or invest in equipment, successfully expanding their businesses. Owning a single smartphone does more than just provide access to information and financial services – it leads to new job opportunities and income. This very mechanism is the driving force behind M-KOPA's growth.

Since its founding in 2011, M-KOPA has continued to climb, posting average annual growth of over 50% since 2020, when it began focusing in earnest on smartphone sales. Its cumulative customer base has surpassed 10 million, and the company currently operates in five African countries.
Moving forward, while further refining the business model started in Kenya, M-KOPA aims to accelerate growth within Africa and is also considering entry into South Asia, Southeast Asia and Latin America. The company's vision of broadening possibilities for people through the power of technology continues.