Nigerian fintech Moniepoint, which provides financial services to small businesses, has raised an additional $90m in investment. According to company vice president Ross Strike, this completes a $200m funding round and will be used to accelerate expansion plans across Africa.
The round was backed by a mix of private equity and strategic investors, including Visa, Development Partners International (DPI) LLP, Leapfrog, and Alphabet’s Google Africa Investment Fund.
The new funding secures Moniepoint’s valuation at over $1bn, maintaining its status as one of the continent’s “unicorn” startups. The $90m tranche follows a $110m raise led by DPI and backed by Google, which was announced earlier.
Why it matters: The merchant-first model
Moniepoint has established a significant footprint in Nigeria by focusing on services for individuals and small merchants, a large demographic often underserved by traditional banks.
The company provides a financial platform that includes digital bank accounts, low-collateral loans, and point-of-sale (POS) terminals. This focus is critical in a market where, according to the company, approximately 83% of African employment is in the informal economy.
This strategy has generated substantial scale. Moniepoint reports processing over one billion transactions monthly, with a total monthly payment volume (TPV) exceeding $22bn.
The company’s growth was significantly bolstered by external events, particularly Nigeria’s currency redesign in February 2023. Widespread cash shortages at traditional banks compelled millions of individuals and businesses to seek alternative digital payment solutions. Moniepoint’s extensive network of POS terminals proved crucial in facilitating transactions during this period, rapidly expanding its user base.
Bucking the trend
Moniepoint’s ability to attract $200m from high-profile strategic investors is notable given the current funding climate for African tech.
In 2024, African startups raised $2.2bn, a 25% decrease compared to the previous year, according to industry data. Analysts attribute this decline to rising global interest rates, which have reduced investor appetite for ventures perceived as higher risk.
Moniepoint’s success in this environment suggests that strong investor interest remains for fintech companies that are solving fundamental infrastructure problems and can demonstrate significant traction.
What’s next: Expansion
With the new capital, Moniepoint plans to replicate its Nigerian success in other African markets. “The opportunities that exist in Nigeria also exist in multiple countries,” CEO Tosin Eniolorunda said earlier this year. The firm recently acquired the UK’s Bancom Europe to secure a key UK financial institution license, despite reporting significant early-stage losses in the country.
Kenya has also been identified as a potential key target for this regional expansion. Moniepoint recently acquired Sumac MFB to secure a Kenyan microfinance license and replicate its Nigerian success. Sumac, backed by REGMIFA, is deeply embedded in Kenya’s small-business ecosystem. Analysts suggest the company’s additional strategy will likely involve strategic acquisitions, enabling it to leverage its existing platform for rapid scaling across regions.
Moniepoint joins a select group of African fintech unicorns, including Interswitch, Flutterwave, and Wave. While these companies share a high valuation, they have distinct focuses: Flutterwave on API-driven payments, Wave on mobile money in Francophone Africa, and Moniepoint on merchant and agent banking services.
The partnership with Visa is expected to enhance Moniepoint’s capabilities by leveraging Visa’s expertise and global payments infrastructure, potentially leading to new product development for its merchant base.