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.

According to M-KOPA's financial disclosures, the company purchased 100% of KilpiTek's voting shares on March 26 in a cash-and-stock transaction. 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 to 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. Under M-KOPA's business model, customers acquire smartphones and other products through an initial deposit followed by daily or periodic repayments. The ability to remotely restrict a device serves as a form of security for loans that banks would 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 — the “Oy” in its name is the Finnish designation for a limited company — develops software for device locking and related technology services. M-KOPA did not disclose KilpiTek's revenues, profitability, or number of employees in its financial statements.

The transaction was completed after M-KOPA's December 31, 2025, reporting date, placing it within the group's 2026 financial year, and has been classified as a non-adjusting subsequent event — an accounting term for events that occur after the reporting period and therefore do not alter previously reported results. It did not affect the group's reported financial position or results for 2025.