Moniepoint, a Nigerian fintech company recently valued at over $1bn, has secured over $10 million investment from Visa, the global payments giant, in a move that highlights growing investor confidence in Africa’s digital financial services sector despite a broader slowdown in tech funding. The investment, the size of which was not disclosed, comes on the heels of a $110m funding round earlier this year led by Development Partners International (DPI) and backed by Google’s Africa Investment Fund.
The partnership hints at a hared ambition of Visa and Moniepoint to expand financial inclusion across Africa, where a significant portion of the population remains outside the formal banking system. Moniepoint has carved a niche by providing digital financial services to individuals and businesses, particularly small merchants underserved by traditional banks. Its platform offers digital bank accounts, low-collateral loans, and point-of-sale (POS) terminals, processing over 1bn transactions monthly with a total payment volume exceeding $22bn.
“This investment marks an important milestone in our collective pursuit of advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa,” Moniepoint said in a statement. The company highlighted that approximately 83% of African employment is in the informal economy, making its mission to widen access to formal financial services crucial for driving economic growth.
Visa’s investment in Moniepoint follows a period of significant growth for the Nigerian fintech. The company benefited from Nigeria’s currency redesign in February 2023, when cash shortages at traditional banks drove demand for alternative digital payment solutions. Moniepoint’s accessible platform proved crucial in facilitating transactions during this period, significantly expanding its user base.
Moniepoint’s success story is particularly notable given the current funding climate for African tech companies. In 2024, African startups raised $2.2bn, a 25% drop compared to the previous year, according to industry data. Analysts attribute this decline to rising interest rates, particularly in the US, which have reduced investor appetite for riskier ventures. However, Moniepoint’s ability to attract investment from major players like Visa and DPI demonstrates continued investor interest in fintech solutions that address fundamental needs in emerging markets.
“The opportunities that exist in Nigeria also exist in multiple countries,” said Tosin Eniolorunda, Moniepoint’s CEO, earlier this year. The company has expressed intentions to expand across Africa, with Kenya potentially being a key target. This regional expansion strategy aligns with Moniepoint’s long-term vision of promoting financial inclusion across the continent and has been a key factor in attracting investment from firms like DPI, which has a track record of investing in Africa’s technology sector.
Moniepoint joins a select group of African “unicorns” — privately held startups valued at over $1bn — including Interswitch, Flutterwave, and Wave. These companies have each addressed specific challenges within their respective markets, contributing to the broader development of Africa’s digital financial ecosystem. For example, Flutterwave has focused on building API-driven payment solutions, while Wave has concentrated on mobile money services in Francophone Africa.
Analysts suggest that Moniepoint’s expansion will likely involve strategic acquisitions, allowing it to leverage its existing platform to scale across different regions. This approach, coupled with its focus on serving underbanked populations, positions Moniepoint as a key player in Africa’s evolving financial landscape.
The partnership with Visa is expected to further enhance Moniepoint’s capabilities by leveraging Visa’s expertise in global payments infrastructure and network. This collaboration could lead to the development of new products and services, further expanding access to digital financial services for individuals and businesses across Africa.
Moniepoint ’s journey, from its founding nine years ago to its current unicorn status and partnership with a global giant like Visa, exemplifies the potential of Africa’s tech sector, even amidst challenging market conditions. Its focus on scalable, technology-driven solutions is setting a new standard for African fintech companies and contributing to the development of a more inclusive and robust digital economy across the continent.