Moniepoint, a Nigerian fintech startup, has joined the exclusive ranks of African “unicorns” after securing a $110 million funding round, bringing its valuation above $1 billion. The investment, led by London-based Development Partners International (DPI) and backed by Google’s Africa Investment Fund, highlights both Moniepoint’s potential and investor confidence in Africa’s burgeoning fintech ecosystem, despite a regional slowdown in tech funding.
The new funding will help Moniepoint continue its growth in Nigeria and enable expansion across Africa. “The opportunities that exist in Nigeria also exist in multiple countries,” said Tosin Eniolorunda, Moniepoint’s CEO. “We are looking at options in our toolkit to find the best fit for expansion, as markets across Africa are at different levels of financial development.”
Moniepoint’s Journey to Unicorn Status
Founded nine years ago, Moniepoint provides digital financial services for Nigeria’s vast population, where a significant proportion of citizens remain unbanked. Moniepoint’s platform offers a range of services, including digital bank accounts, low-collateral loans for enterprise clients, and point-of-sale (POS) terminals that support small merchants, a segment often underserved by traditional banks.
The company experienced significant growth following Nigeria’s February 2023 currency redesign, when demand for cash overwhelmed traditional banks. Moniepoint’s accessible digital solutions enabled millions of Nigerians to complete transactions during the currency shortage, strengthening its user base and proving its critical role in the country’s financial landscape.
While Moniepoint will continue to grow in Nigeria, its immediate focus is to tap into other markets across Africa, a region with high demand for accessible financial solutions. According to sources familiar with the expansion plans, Kenya could be among Moniepoint’s next targets, with the fintech potentially exploring acquisition opportunities to strengthen its foothold in East Africa.
This regional expansion aligns with Moniepoint’s long-term vision of broadening financial inclusion across the continent, a mission that has attracted backing from significant partners. DPI, which has a history of investing in Africa’s technology sector, and Google’s Africa Investment Fund have identified Moniepoint as a major driver of digital financial transformation on the continent.
African Fintechs in a Global Context
Moniepoint joins a small cohort of African ‘unicorns‘, including Interswitch, Flutterwave, and Wave, companies that have redefined how Africans access financial services. Each of these firms has risen to unicorn status by addressing the unique challenges within their markets. For example, Flutterwave built an API-driven platform for payment solutions, while Wave has focused on mobile money in Francophone Africa.
With the new investment, Moniepoint aims to compete within this growing circle, leveraging strategic partnerships to streamline its services. Osarumen Osamuyi, founder of tech analysis firm The Subtext, notes that Moniepoint’s expansion will likely be achieved “through strategic acquisitions, leveraging their existing platform to scale across regions.” He adds that Moniepoint’s focus on underbanked populations aligns well with investor priorities, which currently emphasize scalable models capable of penetrating underserved markets.
Moniepoint’s unicorn status comes at a time when African tech companies face funding headwinds. In the first three quarters of 2024, African startups raised $1.4 billion — down 38% from the previous year. Analysts attribute this decline to higher interest rates, especially in the United States, which has tempered investor appetite for risk. Despite this, Moniepoint’s success points to investors’ selective optimism in fintech, a sector that remains integral to Africa’s economic development.
The recent funding round reinforces Moniepoint’s role as a pillar in Africa’s fintech industry, drawing parallels to the resilience and adaptability demonstrated by other African unicorns. Like Nigeria’s Interswitch, which has become a cornerstone of digital payments, Moniepoint is positioning itself as an essential player in expanding financial access across the continent.
As Moniepoint moves forward with plans to expand, its impact on Africa’s financial ecosystem could be profound. By prioritizing scalable, technology-driven solutions, Moniepoint is setting a standard for what African fintech companies can achieve. Its journey also serves as a testament to the potential of Africa’s tech sector, even amid broader market challenges. For Moniepoint and its investors, the goal remains clear: driving financial inclusion and building a sustainable digital economy across Africa.