The company secures $110 million in funding from investors, including Google, despite a slowdown in fundraising for African startups.
Nigeria-based fintech Moniepoint has reached “unicorn” status after raising $110 million from investors, including Google—a rare success in an otherwise challenging funding environment for African tech companies.
The nine-year-old company achieved a valuation exceeding $1 billion in this funding round, led by London-based private equity firm Development Partners International and backed by Google’s Africa Investment Fund, according to sources familiar with the deal.
Having previously raised $55 million, Moniepoint operates within Nigeria’s rapidly expanding fintech sector, delivering digital financial services in a country where access to basic banking is still limited for many.
CEO Tosin Eniolorunda stated that Moniepoint plans to continue investing in its home market of Nigeria while using the new funds to expand operations across Africa.
The opportunities present in Nigeria are also available in multiple countries,” Moniepoint CEO Tosin Eniolorunda told the Financial Times. “The stages of development vary; some countries lag behind Nigeria by a decade or more, while only a few are ahead. We’re exploring our toolkit to determine the best ways to enter new markets, which is our current focus.”
Recognized by the FT as one of Africa’s fastest-growing companies in recent years, Moniepoint offers digital banking services for individuals and businesses, loans to enterprises without heavy collateral requirements, and point-of-sale terminals for small merchants. The company gained significant traction in February 2023 when Nigeria’s central bank attempted a currency note replacement, causing cash shortages that left banks overwhelmed.
Moniepoint’s latest capital raise comes amid a broader decline in startup funding across Africa. Data from Africa: The Big Deal shows that African startups raised $1.4 billion in the first three quarters of this year, marking a 38 percent drop from the same period last year. Analysts attribute this to high interest rates from Western central banks, especially in the U.S., which has dampened investors’ appetite for risk in emerging markets.
Osarumen Osamuyi, founder of African tech analysis firm The Subtext, believes Moniepoint will use the new funds to fuel its expansion across the continent, likely through strategic acquisitions. Sources familiar with the company’s plans indicated that Kenya could be a starting point, with acquisition discussions already in progress.
