Kenya's Watu Holdings profits drop 85% to $1.2mn as loan defaults rise

Kenyan BNPL Startup Watu Reports 84% Profit Drop Amid Loan Defaults

Kenyan buy-now-pay-later (BNPL) startup Watu Holdings has reported a significant 84% decline in profit, dropping to $1.2 million (KES 157 million) in 2024, according to financial disclosures by Car & General, which holds a 29% stake in the company. This contrasts sharply with the $7.6 million (KES 985 million) profit recorded in 2023 and reflects mounting loan defaults and weakening repayment trends in Watu’s main markets: Kenya, Uganda, and Sie…

FINTECH AFRICA | Kenyan BNPL Startup, Watu, Sees 85% Profit Plunge in One Year Amid Rising Loan Defaults

Watu Holdings, a Kenyan buy-now-pay-later (BNPL) startup, reported a steep 84% decline in profit to $1.2 million (KES 157 million) for the year 2024, according to filings by Car & General, which owns a 29% stake in the company. The drop from $7.6 million (KES 985 million) in 2023 highlights increasing loan defaults and weakening repayment patterns across Watu’s key markets: Kenya Uganda, and Sierra Leone. The company’s lending model targets inf…

Kenya's Watu Holdings profits drop 85% to $1.2mn as loan defaults rise

Watu Holdings, a Kenyan buy-now-pay-later startup, reported a sharp 84% drop in profit to $1.2 million (KES157 million) in 2024, according to disclosures by Car & General, which holds a 29% stake in the business. The decline from $7.6 million (KES985 million) a year earlier points to rising loan defaults and deteriorating repayment behaviour in Watu’s core markets of Kenya, Uganda, and Sierra Leone. Watu has built its model around lending to inf…