Established in Ghana in October 2021, M-KOPA, a leading fintech platform has acquired 100,000 customers in two years.
They offer affordable smartphone financing to those traditionally excluded from financial services.
"The acquisition alone does not matter to us but the impact we have made in the lives of these customers who are mostly financially excluded and lack the requirements to access financial aid," said Chioma Agogo, General Manager of M-KOPA Ghana.
At a breakfast session with journalists on Thursday, November 30, at its Head office in Accra, General Manager Chioma Agogo said the increase in customer acquisition is a testament to the company’s progress.
The milestone, according to the General Manager, is birthed by the commitment and hard work of their agents who search and maintain the customers with support from the customer sales team.
"Started with only 30 agents, the company now boast over 2, 000 agents working hard each day to connect and impact the financial lives of the customers," noted Chioma Agogo.
Through M-KOPA's smartphone lending program, individuals have been able to purchase smartphones worth about GHS3,000 by making a 10% down payment and repaying the rest in daily instalments of GHS12 over 4-6 months.
According to the company’s 2023 impact report, there are over 350 million financially excluded adults in Africa without access to banking or credit due to lacking collateral, credit histories, or guarantors.
M-KOPA aims to fill this gap by offering an alternative to traditional lending models which do not require collateral or bank statements.
According to Mayur Patel, M-KOPA Group's Chief Commercial Officer, over 40% of their customers were first-time smartphone users previously unable to afford one.
Now, more than half use their phones to boost incomes from small businesses like ride-hailing.
The company works to support customers facing repayment challenges, either adapting payment plans or repossessing devices while returning deposits.
Smartphones also have locking solutions which automatically lock the devices should a customer intentionally default—detering theft of unpaid devices.
Going forward, M-KOPA Ghana cites inflation and production costs as challenges but hopes partnerships with Mobile Network Operators (MNOs) such as MTN and Vodafone and phone suppliers—Nokia and Samsung can help scaling access to even more underserved Ghanaians as they intend to expand geographically.
Customer testimonies shown at the session exhibit lives improved through new economic opportunities unlocked by affordable smartphone ownership.