Moniepoint Inc., a prominent Nigerian fintech company, has received regulatory approval to go ahead with its acquisition of Kopo Kopo Inc., a Kenyan fintech player renowned for its provision of digital financial solutions, particularly unsecured short-term loans, to small and medium-sized enterprises (SMEs) in Kenya.
The planned acquisition, which will mark a significant
milestone for both companies, recently received the green light from The
Competition Authority of Kenya, after the companies reached the financial
threshold mandated by the authority.
As an essential aspect, the authorities emphasised that any
transactions involving merging entities whose combined turnover or assets
exceed Ksh. 1 Billion must seek formal approval from the authority before
proceeding.
The consolidation of Moniepoint and Kopo Kopo successfully
met this financial threshold, compelling a mandatory notification to the
regulatory body for further examination, as mandated by the Competition
(General) Rules of 2019.
In a statement, Tosin Eniolorunda, Group CEO, of Moniepoint
Inc., said the company has a publicly stated interest in Kenya as part of its
mission to provide financial happiness for people across Africa.
“We are delighted to have taken the first step by securing
regulatory approval for our plans to provide financial happiness to Kenyans and
look forward to progressing the transaction. A further update will be given
when appropriate,” he said.
The regulatory body also undertook a comprehensive
evaluation of the merger’s potential ramifications for the financial market.
Notably, two pivotal conclusions emerged from the assessment. Firstly, the
integration of Moniepoint and Kopo Kopo is not projected to introduce any
adverse competitive consequences within the digital credit sector. Secondly,
there are no foreseen adverse effects on the broader public interest that could
arise as a result of the transaction.
Moniepoint, previously known as TeamApt, boasts a notable
legacy spanning eight years in Nigeria’s dynamic payments industry. Beyond its
core competence in payment processing, Moniepoint has extended its purview to
encompass an array of essential financial services tailored to SMEs.
The company recently announced plans to enter the consumer
banking segment. As such, it unveiled a consumer-facing mobile application and
debit card. The digital financial services provider added that payment
processors, Mastercard and Verve will issue the debit cards to users.
Led by Tosin Eniolorunda, Moniepoint has been towing the
ladder of success, hitting profitability since 2020. The company which
rebranded at the start of the year has taken several strides to increase its
influence and reach across the continent.
Backed by leading institutional investors such as QED
Investors, Novastar, Lightrock, BII, FMO, Global Ventures, Endeavour Catalyst,
and New Voices Fund, the company has also been on course to become a Unicorn.
Over the course of its journey, Moniepoint has secured
substantial funding—approximately $100 Million. Its most recent funding round,
which took place in August 2022, proved especially momentous.
This funding which garnered $50 Million, was led by QED
Investors, a preeminent venture capital entity based in the United States. With
a dedicated focus on investments within the fintech sector, QED Investors’
participation attested to the confidence and enthusiasm surrounding
Moniepoint’s trajectory.
The strategic acquisition of Kopo Kopo aligns seamlessly
with Moniepoint’s broader vision of bolstering financial inclusion and
innovation across the African continent. The synergistic consolidation is
poised to forge new avenues for the convergence of technological prowess and
financial expertise.
According to a report on the Nigerian Financial Services
Market by Intelpoint, MoniePoint boasts the second-largest network with 303,946
POS agents scattered across the country. Together, both companies control
867,208 agents, representing 57.8 per cent of POS agents in the country.
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