Founder Magazine: Jesse, thank you for joining us. To start, could you share your journey and what led you to co-found M-KOPA?
Jesse Moore: Thank you for having me. My journey began when I moved to Nairobi in 2010 with my wife, Natasha. Armed with just four PowerPoint slides, no money, no name, and no products, I was determined to make a difference. I co-founded M-KOPA with Nick Hughes and Chad Larson, aiming to provide affordable solar power to off-grid households in Kenya. Over time, our model evolved to include smartphones and digital financial services, leveraging mobile technology to serve the underbanked.
About M-KOPA
Q1: What is M-KOPA, and what problem does it aim to solve?
A: M-KOPA is a fintech company that offers affordable smartphones and digital financial services to low-income households in Sub-Saharan Africa. Through our pay-as-you-go model, customers can make small daily payments via mobile money platforms like M-Pesa, enabling them to own smartphones and access services such as credit, insurance, and savings. This model provides financial inclusion to individuals who are often excluded from traditional banking systems
Q2: How does M-KOPA’s business model work?
A: Customers make a small initial deposit and then pay a daily fee through mobile money services. Once the total amount is paid, the customer owns the device outright. This model not only makes smartphones affordable but also helps customers build a digital credit history, unlocking access to other financial services.
Growth and Impact
Q3: M-KOPA has reached over 6 million customers across several African countries. What do you attribute this growth to?
A: Our growth is a testament to the demand for affordable and accessible financial services. By leveraging mobile technology and understanding the needs of our customers, we’ve been able to scale rapidly. Our partnerships with mobile network operators and financial institutions have also played a crucial role in our expansion
Q4: What challenges have you faced in scaling M-KOPA, and how have you overcome them?
A: Scaling in diverse markets comes with its challenges, including regulatory hurdles, infrastructure limitations, and cultural differences. We’ve overcome these by building strong local teams, adapting our solutions to fit local contexts, and maintaining a customer-centric approach. Continuous innovation and partnerships have also been key to our success.
Future Outlook
Q5: What does the future hold for M-KOPA?
A: We’re focused on expanding our product offerings beyond smartphones to include services like health insurance and electric mobility solutions. Our goal is to continue empowering underserved communities by providing them with the tools they need to improve their lives and achieve financial independence.
Q6: What advice would you offer to aspiring entrepreneurs in Africa?
A: Focus on solving real problems for your community. Understand your customers deeply, be adaptable, and leverage technology to create scalable solutions. Building a strong team and fostering partnerships are also crucial for success.