Babajide Duroshola Joins M-Kopa to Lead Nigeria Expansion

Former SafeBoda Nigeria Head Joins M-KOPA as General Manager

Babajide Duroshola, previously the country head of SafeBoda Nigeria, concluded his position on June 18th, following a two-year tenure after his time with Andela.

Within a month, the executive secured a new role as the general manager for M-KOPA, a Kenyan-based company. This appointment aligns with M-KOPA’s broader expansion plans, notably including an entry into the Nigerian market.

Strategic Launch in Ibadan

When SafeBoda recruited Duroshola in 2019, the Ugandan ride-hailing service was anticipating expansion into Nigeria. Lagos was widely considered the logical choice for launch.

However, Duroshola and his team opted for Ibadan, a neighboring city, rather than entering one of Africa’s most prominent tech hubs. Despite being perceived as a substantial risk, this decision appears to have been successful.

While other ride-hailing services like ORide, MAX.ng, and Gokada were forced to cease operations in Lagos following a ride-hailing ban, SafeBoda flourished in Ibadan. By the time of Duroshola’s departure, the company had registered 5,000 drivers and completed over 1.5 million rides within a year.

Asset Financing and M-KOPA’s Appeal

SafeBoda utilizes an asset-financing model to provide smartphones to its riders. M-KOPA has employed this very concept since its founding, and it was a key factor in Duroshola’s decision to join the organization.

“Beyond ride-hailing, I am particularly interested in the credit sector. I am driven to explore ways to extend credit access and assist individuals in establishing their digital presence,” Duroshola explained to TechCrunch. “M-KOPA’s approach resonated with these interests.”

M-KOPA’s Expansion and Offerings

M-KOPA was established in Kenya a decade ago and is credited with pioneering the pay-as-you-go (PAYG) solar market within the country.

Over time, the company has broadened its product range to encompass televisions, refrigerators, various electronic appliances, and financial services for customers in both Kenya and Uganda. Customers can gradually gain ownership through an initial deposit and subsequent, manageable micro-payments.

To date, M-KOPA has sold over 1 million PAYG solar systems and disbursed $400 million in financing to millions of customers, securing over $180 million in equity and debt funding. Last year, the company integrated smartphone financing into its Kenyan offerings through partnerships with Safaricom and Samsung.

Mobile Technology and Economic Impact

A GSMA report indicated that mobile technologies and services contributed 9% to sub-Saharan Africa’s GDP in 2019, equating to approximately $155 billion in economic value.

Considering that smartphones are utilized more frequently in daily life than solar systems, it’s not surprising that M-KOPA has already sold 500,000 smartphones – half the number of solar systems sold over a ten-year period.

Pilot Program and Scaling in Nigeria

Earlier this year, M-KOPA conducted a pilot program in Nigeria, offering both solar systems and smartphone financing options. Smartphone financing proved more popular, with over 20,000 devices sold in Lagos, the company’s initial market.

This success led to the appointment of Duroshola, viewed as essential for rapidly scaling the offering within Nigeria.

“We were focused on identifying a leader with a proven track record and deep understanding of the Nigerian tech landscape to guide our team as we expand our operations,” stated Mayur Patel, M-KOPA’s CCO, in an email to TechCrunch. “Babajide’s appointment marks a significant step in our growth and expansion plans.”

Partnerships and 4G Adoption

M-KOPA is currently operating in both Lagos and Oyo, having expanded to the latter last month. Similar to its approach in Kenya, M-KOPA has partnered with Samsung, and Airtel, a different mobile network operator, to provide smartphone financing to Nigerian customers.

Patel notes that both Nokia and Samsung offer entry-level and mid-range handsets at varying price points. He emphasizes that a key priority for mobile network operators (MNOs) across the continent is transitioning 2G/3G users to 4G.

M-KOPA believes it can address the affordability challenge of 4G devices in Nigeria, as 75% of its customers are first-time 4G smartphone owners.

Affordable 4G Access

“Our collaborations with these OEMs enable M-KOPA to offer affordable ownership of quality 4G smartphones to underbanked customers who are typically excluded due to a lack of credit history or salaried income,” Patel explained.

In Nigeria, M-KOPA currently offers various Samsung A series models (A02, A12, A22, A32) priced between $80 and $250 (~₦40,000 to ₦125,000). The company intends to incorporate additional devices and manufacturers, though a specific timeline has not been announced.

Expanding Beyond Smartphones

While M-KOPA is currently concentrating on smartphone financing in Nigeria, Duroshola aims to replicate the comprehensive product offerings available to M-KOPA’s customers in Kenya, which include products beyond smartphones. He believes this will contribute to building their credit history and financial standing over time.

Future Growth and Vision

The Kenyan company is actively recruiting for engineering positions in Nigeria and globally to support its expansion initiatives. Duroshola will spearhead the Nigerian operations, marking his third venture in scaling African startups within the country.

“My personal vision is to help African startups scale, and to be the person who can build, set up, and guide them to develop their business strategy and integrate into the Nigerian market. I envision M-KOPA becoming a leading credit provider in Nigeria, a household name synonymous with pay-as-you-go financing for everyday needs,” Duroshola concluded.