M-KOPA buys Finnish device-locking company for $8 million

M-KOPA has bought Finnish software company KilpiTek Oy for $8 million, adding the technology used to lock financed smartphones to its own business. The Kenyan company completed the acquisition on 26 March 2026, buying all of KilpiTek’s voting shares. The deal was worth $8 million. M-KOPA paid $2.67 million in cash, while the other $5.33 million came through M-KOPA shares and other consideration, including deferred payments and remuneration. KilpiTek develops software that lets companies remotely lock and unlock mobile devices. For M-KOPA, the technology is used on phones that customers are paying off over time.

When payments stop

M-KOPA finances smartphones through instalment plans. Customers pay an upfront amount and then make regular payments until the phone is paid off. The device-locking system gives the company a way to restrict the phone if those payments stop. Once the customer resumes payments, the device can be unlocked. That is an important part of M-KOPA’s lending model because the phone itself provides some security for the financing. Customers do not have to put up traditional collateral to get the device.

M-KOPA takes the technology in-house

Before the acquisition, KilpiTek was an outside technology provider. M-KOPA said buying the company will bring its device-locking technology in-house and give it greater control over the system. The company also linked the acquisition to its strategy for sourcing smartphones. Owning the technology could give M-KOPA more freedom to integrate its financing system with phones from different manufacturers. It also removes one outside supplier from a part of the business that is directly connected to customer repayments.

The deal was not an $8 million cash purchase

Only about a third of the purchase price was paid in cash. M-KOPA paid $2.67 million upfront, with the rest made up of equity and other consideration. The company disclosed M-KOPA ordinary shares, deferred consideration and remuneration among the other components. M-KOPA did not disclose KilpiTek’s revenue or profit in the transaction disclosure. The acquisition was completed after M-KOPA’s 31 December 2025 reporting date, so it was not included in its 2025 results.

Smartphones have become a bigger part of M-KOPA

M-KOPA started with pay-as-you-go solar products but has since built a large smartphone financing business across African markets. Its model allows customers to get a phone without paying the full price upfront. Instead, they spread the cost over a series of payments. 

That model depends on being able to manage the device throughout the repayment period. Buying KilpiTek gives M-KOPA control of the software used for one of those functions. The company has not said how much additional revenue it expects from the acquisition. Its stated reason for the purchase is to own the device-locking technology and have more control over how it is used across its financing business.