Kenyan BNPL startup Watu profits drop 85% to $1.2 million as loan defaults rise
- Watu Holdings reported an 84% drop in profit to $1.2 million in 2024.
- The decline in profit is linked to rising loan defaults in core markets like Kenya, Uganda, and Sierra Leone.
- Watu's business model primarily serves informal transport operators and low-income earners.
The significant drop in profits for Watu Holdings raises concerns about the sustainability of its business model, particularly in the face of rising defaults and competition. While the expansion into electric vehicles is a positive move, the overall economic pressures on low-income earners in Kenya suggest that Watu may need to reassess its strategies to mitigate risks and ensure long-term viability.
