In a significant milestone for Africa’s fintech landscape, Moniepoint announced yesterday, October 29, that it has successfully raised $110 million in a Series C funding round, elevating its valuation to $1 billion and securing its status as the continent’s eighth unicorn. This remarkable growth comes on the heels of a $55 million raise earlier this year, which had already seen the company’s valuation soar from $400 million.
Founded in 2015 as TeamApt, Moniepoint has transformed from a startup offering essential services like payments and withdrawals to a full-fledged business bank, boasting over 800 million transactions monthly worth more than $17 billion. The company has achieved a staggering revenue increase of 150% CAGR in recent years, with reported revenues jumping from $1.84 million in 2019 to $148.66 million in 2022, according to the Financial Times.
The recent funding round, led by Development Partners International (DPI), is expected to fuel Moniepoint’s ambitious plans for continental expansion. With a robust foundation in Nigeria, the fintech aims to extend its reach through strategic acquisitions, with Kenya as a key target market for these initiatives. Insiders indicate that discussions for acquisitions in Kenya are already underway, setting the stage for a broader regional presence.
Moniepoint’s innovative approach has been pivotal in addressing the banking needs of Nigeria’s underbanked population. With only 4.3 bank branches per 100,000 people in Nigeria as of 2018, Moniepoint has leveraged a vast network of local agents, including small retail stores, to deliver vital financial services to millions. This strategy has not only filled a critical gap but also propelled the startup into the personal banking sector, contributing to a remarkable 20-fold increase in customer growth over the past year.
Moniepoint makes it the fifth unicorn from Nigeria and all of the eight unicorns include Flutterwave (Nigeria) – Valued at approximately $3 billion, this payment infrastructure provider facilitates cross-border transactions; OPay (Nigeria) – A mobile-based financial platform valued at around $2 billion, offering services like payments and loans.
Wave (Senegal), a mobile money service valued at about $1.7 billion, focusing on providing affordable financial services; Chipper Cash (Ghana), valued at approximately $1.25 billion, this company provides cross-border payment solutions in several African countries.
Interswitch (Nigeria), an integrated digital payments and commerce company valued at around $1 billion; MNT-Halan (Egypt), valued at $1 billion, this company focuses on lending to the unbanked population and has recently achieved unicorn status; and Jumia (Nigeria) which became Africa’s first unicorn in 2019, it has since fallen below the $1 billion valuation threshold.
As Moniepoint charts its path forward, the fintech community and investors alike are keenly watching how this unicorn will shape the future of financial services across Africa.
