Introduction
Moniepoint, a leading African fintech company, has secured $110 million in new financing, marking a significant milestone in its journey. The latest investment round was led by Development Partners International’s African Development Partners (ADP) III fund, with Google’s Africa Investment Fund joining the list of investors for the first time. This Series C funding brings Moniepoint’s total raise to over $180 million since its inception in 2015.
Background
Moniepoint initially focused on providing infrastructure and payment solutions for banks and financial institutions before pivoting to become a business banking provider. The company has seen remarkable success in this area, catering to small and medium-sized businesses (SMBs) across Nigeria. Its services include working capital, business expansion loans, and business management tools such as expense management, accounting, and bookkeeping solutions.
Investment and Valuation
The latest investment round values Moniepoint at over $1 billion, making it a unicorn in the African fintech space. This valuation is a significant increase from its previous valuation of slightly over $800 million in a QED-led round two years ago. The company’s growth has been fueled by its expansion into personal banking and its continued dominance in the point-of-sale (POS) market as the country’s largest merchant acquirer.
Funding Breakdown
The new funding will be used to accelerate Moniepoint’s growth across Africa, with a focus on building digital payments, banking, foreign exchange (FX), credit, and business management tools. The company currently generates 90% of its revenue from Nigeria but has plans to expand its reach across the continent.
Impact and Future Plans
Moniepoint claims it processes over 800 million transactions, with monthly total value exceeding $17 billion. Its recent foray into personal banking has seen a remarkable 20x customer growth in the past year. With this new funding, Moniepoint is poised to continue its expansion plans, solidifying its position as a leader in African fintech.
Investor Participation
The Series C round was led by ADP III fund, with Verod Capital and existing investor Lightrock participating alongside Google’s Africa Investment Fund. Other notable investors include QED Investors, British International Investment (BII), and Endeavor Catalyst, who have backed the company since its inception.
Conclusion
Moniepoint’s latest funding round demonstrates the growing interest in African fintech companies and their potential for growth. With a valuation of over $1 billion and plans to expand across Africa, Moniepoint is set to continue making waves in the industry. As it navigates this new phase of growth, the company will undoubtedly face challenges, but its commitment to innovation and customer satisfaction bodes well for its future success.
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About the Author
Tage Kene-Okafor is a reporter at TechCrunch based in Lagos, Nigeria, covering the intersection of startups and venture capital in Africa.