Google’s Africa Investment Fund Joins as New Investor
Moniepoint, an African fintech company, has just closed a significant Series C funding round of $110 million. This new investment was led by Development Partners International’s (DPI) African Development Partners (ADP) III fund. Other investors, including African private equity firm Verod Capital and existing investor Lightrock, also participated in the round.
Valuation Surpasses $1 Billion
According to a report by the Financial Times, this new funding makes Moniepoint a unicorn – a private company with a valuation of $1 billion or more. The African fintech was last valued slightly over $800 million in a Series C round led by QED Investors two years ago.
Funding History and Growth
Moniepoint has raised over $180 million since its launch in 2015. This new funding brings the company’s total funding to date to over $270 million. The company plans to use this latest investment to accelerate its growth across Africa, where it currently operates in Nigeria (90% of its business comes from the country).
Business Model and Success
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 found remarkable success in this space, 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 (business payment cards), accounting, and bookkeeping solutions, and insurance.
Transaction Volume
Moniepoint claims it processes over 800 million transactions, with a monthly total value exceeding $17 billion. The company powers most of Nigeria’s point-of-sale (POS) transactions, making it the country’s largest merchant acquirer.
Expansion Plans
With this new funding, Moniepoint plans to expand its services across Africa, building digital payments, banking, foreign exchange (FX), credit, and business management tools. The company recently forayed into the personal banking market and has seen 20x customer growth over the past year.
Moniepoint’s Journey: From Infrastructure Provider to Business Banking Leader
Moniepoint was founded in 2015 with a focus on providing infrastructure and payment solutions for banks and financial institutions. However, the company soon realized that there was a need for more comprehensive services that catered to the unique needs of small and medium-sized businesses (SMBs).
Pivoting to Business Banking
Moniepoint made a strategic pivot to become a business banking provider. This decision proved to be a successful one, as the company quickly gained traction in the market. Moniepoint’s services include working capital, business expansion loans, and business management tools such as expense management (business payment cards), accounting, and bookkeeping solutions, and insurance.
Growth and Expansion
Under its new business model, Moniepoint has experienced remarkable growth. The company claims it processes over 800 million transactions, with a monthly total value exceeding $17 billion. Moniepoint powers most of Nigeria’s point-of-sale (POS) transactions, making it the country’s largest merchant acquirer.
New Funding and Future Plans
With its latest funding of $110 million, Moniepoint plans to accelerate its growth across Africa. The company will use this investment to build digital payments, banking, foreign exchange (FX), credit, and business management tools. Moniepoint recently forayed into the personal banking market and has seen 20x customer growth over the past year.
African Fintech: A Growing Market
The African fintech market is experiencing rapid growth, driven by increasing adoption of digital payments, a growing middle class, and expanding mobile phone penetration. As a result, companies such as Moniepoint are well-positioned to capitalize on this trend.
Moniepoint’s Impact on the Industry
Moniepoint has had a significant impact on the industry since its inception in 2015. The company’s innovative approach to business banking has disrupted traditional financial institutions and provided SMBs with access to comprehensive services. Moniepoint’s success is a testament to the growth potential of African fintech companies.
Investment Opportunities
Moniepoint’s latest funding round presents an exciting investment opportunity for both existing and new investors. With its proven track record, innovative approach, and significant market potential, Moniepoint is well-positioned to continue growing its business across Africa.
Conclusion
Moniepoint’s latest funding of $110 million makes it a unicorn – a private company with a valuation of $1 billion or more. The African fintech company plans to use this investment to accelerate its growth across Africa, building digital payments, banking, foreign exchange (FX), credit, and business management tools. With its innovative approach to business banking and proven track record, Moniepoint is poised for continued success in the rapidly growing African fintech market.
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