M-KOPA acquires Finnish device-locking company KilpiTek Oy for $8 million

M-KOPA, the Kenyan pay-as-you-go startup, has acquired Finnish software company KilpiTek Oy for $8 million, bringing in-house the technology central to its smartphone financing model.

The company acquired 100% of KilpiTek’s voting shares on March 26 in a cash-and-stock transaction, according to M-KOPA’s financial disclosures. M-KOPA paid $2.67 million in cash, with the remaining $5.33 million comprising equity and other consideration, including M-KOPA ordinary shares, deferred consideration, and remuneration.

The acquisition gives M-KOPA direct control of KilpiTek’s device-locking technology, which allows financed smartphones to be remotely restricted or shut down when customers fall behind on repayments.

M-KOPA said the transaction was intended to “bring in-house a critical device-locking capability” and strengthen its control over a key part of its technology platform. It is also expected to support the company’s phone sourcing strategy.

“On 26 March 2026, the Group completed the acquisition of KilpiTek Oy, a Finnish-based software business that provides device-locking and related technology services,” the company said in its financial statement. “The transaction is intended to strengthen the Group’s control over a critical component of its technology stack and support ongoing product and sourcing strategy.”

The deal highlights the strategic importance of device-control software for companies that use pay-as-you-go financing to sell smartphones to consumers who would otherwise struggle to afford them upfront.

M-KOPA’s business model allows customers to acquire smartphones and other products through an initial deposit followed by daily or periodic repayments. The ability to remotely restrict a device is a form of security for loans that banks typically require collateral for.

Owning the technology could give M-KOPA control over how the locking system is integrated with devices sourced from different manufacturers, while reducing its dependence on a third party for a component critical to managing credit risk.

The KilpiTek acquisition also points to M-KOPA’s growing focus on controlling more of the infrastructure underpinning its smartphone financing business as it expands its customer base and works with handset manufacturers.

Finland-based KilpiTek develops software for device locking and related technology services. M-KOPA did not disclose KilpiTek’s revenues, profitability, or number of employees in the financial statements.

The transaction was completed after M-KOPA’s December 31, 2025, reporting date and has been classified as a non-adjusting subsequent event. It did not affect the group’s reported financial position or results for 2025.

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