Financial technology firm M-Kopa has revealed plans to expand its operations to at least 8 markets within three years as well as introduce new devices in the market to support its growth plans.
M-Kopa Kenya General Manager Martin King’ori says the firm is open to raising a new round of capital to support its ambitions of venturing into three new markets.
“We will definitely continue to fundraise due to the ambition for growth. Currently we operate in five markets. We also want that maybe in three years to have already added two or three markets. It’s a capital intensive venture and because of that then we need to continue making sure that we continue with the right partners so that we can connect as many customers as possible,” said King’ori.
M-Kopa successfully closed its last round of funding to the tune of Ksh 32.3 billion ($250m) in May last year.
The firm currently operates in five markets including Kenya, Uganda, Nigeria, Ghana and South Africa where it has acquired five million customers since its founding out of which three million are domiciled in Kenya.
Besides offering digital loans, under its pay-as-you-go model, the firm also helps customers across the key markets to acquire home solar kits, smartphones and electric buys.
Through its Kenyan smartphone assembly launched last year, M-Kopa says it has produced 1.5 million smartphones out of the 3.3 million smartphones it has sold in Kenya since 2020.
The firm is now targeting to introduce new models which have artificial intelligent features and are 5G-ready as it targets to produce 10 million smartphones locally by 2027.
“One of the key things we want to do is to migrate to 5G. Our devices right now are 4G. We already have in the pipeline and a strategy for us to transition to 5G. When you look at our X20, it is not similar to whatever you saw when we were starting assembly. We started with C31,” stated Kingo’ri.
M-Kopa also backs the new directive by the Communications Authority (CA) requiring importers, manufacturers and distributors to register International Mobile Equipment Identity (IMEI) number of each device to ensure a level playing field in the market by blocking fake devices circulating in the market whose duties have not been paid. The directive comes into force effective January 1, 2025.
This comes as the firm bets on its insurance cover and internet of things to reduce default rates currently pegged at 10pc.
“With us rolling out insurances, we have also seen a reduction in the default rates which is a good thing. Insurance will help reduce default rates,” said Tabitha Munyagia, M-Kopa senior tax manager.
According to M-Kopa Impact Report 2024, it has created 16,000 employment opportunities in Kenya, employed 1600 directly, contributed Ksh 17.2 billion in direct and indirect taxes and financed at 1,500 e-bike in Kenya.
M-Kopa also plans to increase its workforce at its local smartphone assembly from the current 325 to 500 next year.
