After over a decade of strategic backing, Goodwell Investments is preparing to divest its stake in Nigerian fintech pioneer Paga, according to a statement from the company. This potential exit follows 13 years of sustained investment and collaboration, during which both entities have evolved significantly. Goodwell first invested €1.5 million in Paga in 2011, alongside its partner Alitheia Capital, marking the beginning of a long-term relationship that has helped transform Paga into one of Nigeria’s leading digital financial platforms.
Goodwell’s philosophy of long-term, impact-driven investments has been key to Paga’s success. With capital scarce in African markets, Goodwell’s focus on providing not only financial support but also strategic guidance has helped the fintech firm navigate the challenges of scaling in a complex regulatory environment. Paga, founded in 2009 with the aim of bringing financial services to underserved populations, has grown from a small startup into a payments ecosystem serving over 22 million unique users.
When Goodwell first invested in Paga, the Nigerian fintech landscape was still in its early stages. Mobile money and digital wallets were not widespread, and reaching unbanked populations was an immense challenge. Paga was one of the first to offer a mobile wallet solution at scale, allowing independent agents to help users deposit and withdraw money via their phones. This early innovation placed Paga at the forefront of financial inclusion efforts in Nigeria.
Since 2011, Paga has achieved remarkable growth. The company’s user base has expanded by 436%, now totaling 22.9 million, while its agent network has grown 423%, to nearly 50,000 agents across Nigeria. These agents serve as a critical bridge between formal banking systems and communities with limited access to financial services. Despite these gains, Paga’s employee base has seen a slight decline of 1% year-over-year, though this reflects an optimization of operations rather than a contraction in the company’s broader trajectory.
Paga’s consistent expansion underscores its resilience in the face of challenges that have tested many fintech startups. As a key partner, Goodwell was instrumental in guiding the company through these challenges, whether regulatory changes or operational hurdles. Beyond providing capital, Goodwell worked closely with Paga’s leadership to strengthen its governance, management structures, and fundraising capabilities, ensuring that the company remained on a solid growth path.
Goodwell Investments has long taken a patient approach to investing, particularly in African markets where volatility and uncertainty can deter shorter-term investors. Since its founding in 2006, Goodwell has focused on creating social impact alongside financial returns, supporting companies that address fundamental societal needs, from financial inclusion to healthcare access. Paga is a prime example of this philosophy in action.
Goodwell’s African portfolio spans 40 companies, impacting nearly 40 million households and creating over 35,000 jobs. In Paga, Goodwell saw the opportunity to not only earn financial returns but to contribute to building a more inclusive financial system in Nigeria. Over the course of its investment, Goodwell helped Paga raise additional capital from other investors, facilitating its expansion and enabling the company to weather the inevitable bumps in the road that come with operating in emerging markets.
The firm’s long-term view has proven crucial, particularly in a global climate marked by increased investor caution, the lingering effects of the COVID-19 pandemic, and regional conflicts. Goodwell’s commitment to Paga, even during difficult periods, highlights the importance of patience and flexibility in impact investing. This is particularly true in Africa, where the potential for both social and financial returns remains vast but often requires sustained engagement.
Paga’s journey is far from over. In recent years, the company has shifted its focus toward offering a broader suite of digital services, including a Platform-as-a-Service (PaaS) model that allows third-party businesses to use Paga’s infrastructure for their own payment needs. This evolution positions Paga to expand beyond Nigeria’s borders and play a larger role in Africa’s digital economy.
The company’s mission — to provide financial services to one billion people — remains at the core of its operations. As it continues to grow, Paga is well-positioned to capitalize on the increasing demand for digital financial solutions across Africa. The company’s extensive agent network, innovative platform, and strong regulatory track record give it a competitive edge in an increasingly crowded market.
Goodwell’s potential exit from Paga comes as the fintech firm reaches a level of maturity that makes it an attractive target for new investors. While Goodwell’s involvement has been key to Paga’s development, the company is now equipped to stand on its own, with a robust business model and a clear path to further expansion. For Goodwell, exiting Paga represents an opportunity to reallocate capital to other high-impact ventures across Africa, continuing its mission of supporting entrepreneurial solutions to the continent’s pressing challenges.