The Pan-African asset financier Watu Credit, has recorded a historic net profit of $37 million (KES 4.8 billion) for the 2025 financial year. This performance represents a 14-fold increase from the $1.2 million profit reported in 2024, signaling a robust recovery and a fundamental shift in the company’s revenue model.
According to a source from Car & General, which maintains a 29% stake in the firm, Watu’s annual revenue moved 92.7% to reach $219.2 million. This growth was largely underpinned by “Watu Simu,” the company’s smartphone financing division. While Watu traditionally built its reputation on financing two and three wheel mobility assets for informal transport workers, the demand for internet-enabled devices has now eclipsed its traditional motorcycle segment in terms of growth velocity.
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The 2025 surge marks a decisive turning point from 2024, a year where the company saw profits plummet by 85%. That period was characterized by high loan impairments in Kenya and significant foreign exchange losses in West African markets, particularly Nigeria. The current stabilization of these regional operations, combined with a pivot toward high-frequency, smaller-ticket smartphone loans, has fortified the company’s balance sheet.
Watu’s model utilizes a “buy-now-pay-later” framework, allowing low-income earners and informal entrepreneurs to acquire smartphones through flexible daily or weekly installments. This approach has significantly increased digital inclusion; the company has now financed over 2 million devices across seven African countries. In Kenya alone, the firm reported that 40% of its phone financing customers experienced a direct increase in income after acquiring a device, underscoring the role of mobile connectivity in the gig economy.
Looking forward, Watu has set an ambitious revenue target of $340 million for 2026. The company plans to continue its aggressive expansion into new territories, including Latin America, while deepening its footprint in Nigeria and the Democratic Republic of Congo. By prioritizing digital assets and electric vehicle financing, Watu is positioning itself to lead the next wave of non-bank asset financing across emerging markets.
