Watu posts a record $37M profit in 2025, a 14-fold increase driven by “Simu” smartphone financing and stabilized regional expansion across Africa.
In a dramatic financial turnaround, Kenyan asset-financier Watu Credit has reported a record net profit of $37 million (KES 4.8 billion) for the 2025 fiscal year. This 14-fold increase from the previous year’s $1.2 million marks a successful strategic pivot from its traditional motorcycle lending to the explosive “Watu Simu” smartphone financing market.
The news, first reported by TechCabal, highlights a 92.7% surge in total revenue to $219.2 million. The recovery follows a brutal 2024, where the company saw profits plummet by 85% due to currency depreciation in Nigeria and rising loan defaults in East Africa.
The “Simu” Catalyst: Phones as a Financial On-Ramp
Watu’s growth is anchored in the “Buy Now, Pay Later” (BNPL) model for mobile devices. In 2024 alone, the company financed 1.4 million smartphones, a move that has effectively diversified its risk away from the volatile “boda boda” (motorcycle taxi) sector. According to Pesa Wall, these smartphone loans act as a “credit on-ramp,” allowing low-income earners to build a credit history that eventually qualifies them for larger assets like electric vehicles (EVs).
In Tanzania, the company recently crossed a massive milestone, reaching one million smartphones financed as of February 2026. As noted by Daily News Tanzania, this “pay-as-you-go” connectivity product has become the primary gateway for thousands of SMEs and gig workers to access digital payments and government services.
Stabilizing Regional Markets
While the startup’s aggressive expansion into seven African markets, including Nigeria, Uganda, and the DRC, initially strained its balance sheet, its parent investor, Car & General, confirmed that operations in these newer territories have finally stabilized. In Nigeria specifically, despite 2024’s currency headwinds, the company is seeing renewed momentum through strategic partnerships. For instance, Jumia recently teamed up with Watu to offer flexible smartphone financing, bringing premium brands like Samsung within reach of average consumers through daily or weekly installments.
The demographic shift is equally notable. By focusing on smartphones, Watu has reached a broader customer base, including women who now represent 40% of their active loans, a significantly higher participation rate compared to traditional vehicle financing.
Looking Ahead: E-Mobility and Global Ambitions
Watu is not resting on its smartphone laurels. The company has set a bold target of $340 million in revenue for 2026, supported by a massive push into green mobility. This includes a commitment to finance 500,000 electric motorcycles by 2030 and a planned expansion into Latin America.
By leveraging data-led underwriting and lower-cost capital from ESG-focused investors like Metier, which invested in Watu in late 2025, the firm is transitioning into a technology-led platform. As Watu moves forward, it is clear that its ability to convert every financed asset into a data-generating tool is what will sustain its record-breaking trajectory.
