M-KOPA, a pay-as-you-go financing company active in five African markets, has acquired Finnish software firm KilpiTek Oy for US$8 million. The transaction was completed on March 26, 2026, and gave M-KOPA 100% of KilpiTek's voting equity. The deal brings device locking technology in-house, strengthening control over a critical part of the company's credit and technology infrastructure.
Device Locking at the Core of M-KOPA's Model
M-KOPA sells smartphones and electric motorbikes on credit in Kenya, Uganda, Nigeria, Ghana, and South Africa. Customers typically pay an initial deposit and then settle remaining balances through daily, weekly, or monthly installment plans. If a payment is missed, device locking software can remotely restrict or shut down the handset, providing security for otherwise unsecured consumer lending.
Before the acquisition, M-KOPA relied on external device locking tools including Samsung Knox and HMD's Softlock service for many of its financed handsets. KilpiTek, based in Tampere, Finland, provides software development, device management, and device locking services. Its security products are specifically designed to support pay-as-you-go financing and micro-financing businesses across mobile and Internet of Things devices.
M-KOPA's privacy notice describes a daily device check tied to the customer's payment status. If enough credit is available on the account, the phone remains active for another day. Before any deactivation, the customer care team sends an SMS or push notification, giving users a chance to catch up on payments, discuss their account, or request a review.
Terms of the Acquisition
M-KOPA completed the acquisition on March 26, 2026, by purchasing 100% of KilpiTek's voting equity interests. The US$8 million consideration, equivalent to about KES 1.04 billion, included US$2.67 million in cash and US$5.33 million in M-KOPA ordinary shares, deferred consideration, and remuneration. The financial statements do not state how the non-cash balance is split among those categories.
Because the deal closed after the December 31, 2025 reporting date, M-KOPA treated it as a non-adjusting subsequent event. The acquisition did not change the group's reported financial position or results for the 2025 financial year. The purchase price allocation, including how much is assigned to software assets and goodwill, is expected to appear in the 2026 accounts.
Strategic Implications for African Device Financing
Owning KilpiTek gives M-KOPA direct control over how device locking is integrated with smartphones sourced from multiple manufacturers. It reduces reliance on third party suppliers for a function that is central to managing credit risk across its loan book. The move also supports the company's wider phone sourcing strategy and its local smartphone production ambitions.
M-KOPA's device financing activity has become increasingly important to its overall business. In the year ended December 31, 2025, the company generated gross income of about KES 77.5 billion, with KES 30.5 billion coming from interest income from asset financing. Its Nairobi factory has three production lines capable of making 7,500 smartphones a day, and the company produced 3.2 million devices as of April while targeting 10 million locally produced smartphones by 2027.
M-KOPA's acquisition of KilpiTek underscores the strategic importance of device control software in pay-as-you-go financing. Bringing this capability in-house should give the company stronger risk management, greater technology independence, and more flexibility as it expands across Africa. The full financial effect of the transaction will become clearer in the company's 2026 disclosures.