Last October, Nigerian fintech startup Moniepoint, formerly TeamApt, cemented its status as a unicorn after securing a $110 million Series C funding round led by Development Partners International. Other backers included Google’s Africa Investment Fund, Verod Capital, and Lightrock. The funding marks a critical inflection point for Moniepoint as it pivots towards expanding its footprint beyond Nigeria, with the United Kingdom (UK) emerging as a key target market.

Moniepoint CEO Tosin Eniolorunda, in announcing the Series C raise, emphasized the company’s vision to empower Africans worldwide with tools to manage finances and grow businesses. “We believe in a world where every African, everywhere, can enjoy financial happiness,” Eniolorunda stated. The company’s growth trajectory in Nigeria, where it processes over 800 million transactions monthly with a total value exceeding $17 billion, has solidified its position as the country’s largest merchant acquirer and in-person payments platform.

To bolster its domestic operations, Moniepoint recently applied for a commercial banking license in Nigeria. If approved, the license would allow the company to expand its product offerings, including facilitating international transactions. Simultaneously, Moniepoint has signaled its intent to deepen its UK presence, with regulatory filings in late 2023 indicating plans to broaden operations in a country that hosts a significant population of Nigerian and African immigrants. This may include obtaining a financial services licence from the UK Financial Conduct Authority. Moniepoint UK currently states it offers IT services to overseas clients.

While Moniepoint’s UK managing director, Babatunde Olofin, dismissed rumours in 2023 of the company relocating to the UK, these disclosures suggest a more concrete expansion strategy.

Although Moniepoint’s UK expansion is laden with promise, its UK arm has operated at a loss since its inception in August 2022, amounting to $1.4 million over 17 months. Despite this, the company’s directors, including Eniolorunda and Felix Ike, remain optimistic, projecting profitability in the coming years. Moniepoint has engaged CLA Evelyn Partners Limited, an FCA-regulated auditing firm, to ensure compliance with the UK’s stringent financial standards, a requirement for securing relevant licenses from the Financial Conduct Authority (FCA).

The FCA’s assessment will scrutinize Moniepoint’s financial stability and operational soundness, indicating the company’s readiness to navigate the regulatory complexities of the UK market.

Moniepoint’s growth in Nigeria has been substantial. The company claims to be Nigeria’s largest merchant acquirer and in-person payments platform, with two out of three Nigerian adults using its terminals. It processes over 800m transactions monthly, with a value exceeding $17bn. CEO Tosin Eniolorunda stated after the funding round, led by Development Partners International with participation from investors including Google’s Africa Investment Fund, that the company aimed to “push the boundaries of access to formal financial systems to the informal sector, which still accounts for over 83% of employment across Africa.”

This expansion comes against a backdrop of regulatory changes and economic volatility in Nigeria. The Central Bank of Nigeria (CBN) recently imposed a daily transaction limit of ₦1.2m ($771) on Point of Sale (PoS) agents, a move that could impact Moniepoint’s core business. This measure, intended to promote traditional banking and a cashless economy, has raised concerns about its potential to disrupt agency banking, a vital service for millions of Nigerians, particularly in rural areas. The CBN’s limits on cash withdrawals and PoS transactions have also been met with criticism.

These regulatory shifts, coupled with currency depreciation, have prompted some international fintechs to diversify away from Nigeria. Uruguayan fintech dLocal recently secured an FCA license, enabling it to serve UK clients seeking access to markets with low traditional payment penetration.

Moniepoint’s rise has been fuelled by its focus on providing digital financial services to Nigeria’s large unbanked population. Its platform offers digital accounts, loans for businesses, and PoS terminals for small merchants. The company benefited significantly from Nigeria’s currency redesign in February 2023, when cash shortages at traditional banks drove users to its digital solutions.

While Moniepoint intends to maintain its Nigerian operations, its expansion strategy includes targeting other African markets. Sources suggest Kenya is a potential next step, with the company possibly exploring acquisitions to establish a stronger presence in East Africa. The UK expansion, however, represents a significant step beyond the continent, testing Moniepoint’s ability to compete in a more mature and regulated market.