Kopo Kopo Explained: Embedded Finance in the Shadow of M-Pesa | Why Moniepoint Acquired it

Kopo Kopo built the critical platform that enabled small and medium businesses (SMEs) across Kenya to accept digital payments through Safaricom’s Lipa na M-Pesa Buy Goods service, beginning in 2012. This initial function paved the way for the company’s core innovation: transforming transaction history into credit access.
The Data-Driven Pivot: Kopo Kopo’s Business Cash Advance (BCA) product is an unsecured digital loan facility, offering up to Kshs 5 million to merchants. Eligibility for these advances is determined by a proprietary algorithm that analyzes over 150 data-driven signals from the merchant's activity, replacing traditional collateral requirements. This availability of credit acts as a strong incentive for merchants to increase their digital transaction volume on the platform, sometimes doubling it right before applying for an advance. Repayment is designed to be effortless and automated, deducted daily as a percentage of the merchant’s digital sales. Kopo Kopo also offers a comprehensive suite of tools, including Bulk Payment solutions for suppliers and employees, and Business Intelligence reports.
The Acquisition: In a major continental move, Nigerian fintech unicorn Moniepoint Inc. acquired 100% of Kopo Kopo Inc. in August 2023. The Competition Authority of Kenya (CAK) approved the deal unconditionally, concluding it was unlikely to harm competition in the digital credit market. The acquisition provided Moniepoint with an immediate, experienced foothold in Kenya, including the retention of Kopo Kopo’s 98 employees, thus acquiring localized human capital and infrastructure. Kopo Kopo raised a total confirmed funding of up to $5.89M from investors like Khosla Impact, Javelin Venture Partners, and Accion Venture Lab.

• Kopo Kopo acquisition
• Moniepoint Kenya expansion
• Lipa na M-Pesa Buy Goods
• Kenya Fintech
• SME Digital Credit
• M-Pesa Business Cash Advance
• Fintech Mergers Africa
• Digital Lending Kenya
• Embedded Finance Africa
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