5 Out of seven Tech Unicorns in Africa Come From Fintech

Africa is seeing a rush of funding for its fintech sector, and a few corporations have already emerged because the continent’s largest fintech bets, turning into unicorns in Africa.

African fintech corporations have raised extra within the first seven months than they’ve within the decade earlier than, in line with one report. Between January and September this 12 months, African fintech corporations have raised a contact close to US$1.5 billion. That, in opposition to the US$1.06 billion they raised all throughout 2011 to 2020, is a transparent indication of accelerated curiosity out there potential of fintech in Africa.

There are a complete of seven tech unicorns in Africa proper now, with fintech unicorns in Africa holding nearly all of 5. The opposite two are Jumia (ecommerce) and the newest unicorn within the continent Andela (HR resolution for software program engineers). The area additionally contains ‘soonicorns’, or corporations which might be one their option to turning into future unicorns, equivalent to Kuda Financial institution. The Nigeria-focused challenger financial institution raised US$55 million in a Collection B this 12 months, at a valuation of US$500 million.

From those that made the US$1 billion lower, right here’s what you’ll want to know concerning the 5 fintech unicorns in Africa.

Prime fintech unicorns in Africa.

Fawry (Egypt)

Valuation: US$2+ billion

Unicorns in Africa flutterwave

A listed firm, Fawry shouldn’t be a unicorn within the technical sense of the phrase (since it’s a listed firm, whereas unicorns are often startups with a US$1+ valuation). But, it’s broadly thought of to be one within the MENA area.

The corporate presents a variety of B2B and B2C fee providers, and trades on the EGX with a market cap of about US$1.5 billion as of 6 October.

OPay (Nigeria)

Valuation: US$2 billion

opay Unicorns in Africa

OPay sprung to unicorn standing after SoftBank’s Imaginative and prescient Fund 2 led a US$400 million funding spherical within the firm in August this 12 months. The spherical took the corporate’s valuation to US$2 billion. It additionally made OPay SoftBank’s debut funding in Africa.

OPay supplies a cellular cash resolution (a central fintech sector in Africa) that comes with bodily debit playing cards, an offline banking resolution and financial savings services.

Wave (Senegal)

Valuation: US$1.7 billion

wave Unicorns in Africa

Wave is the most recent entrant to the listing of fintech unicorns in Africa. The corporate attained a valuation of US$1.7 billion in September this 12 months, after a US$200 million Collection A funding spherical.

Buyers within the firm embody international heavyweights Sequoia, Founders Fund, Stripe and Ribbit Capital. Wave additionally presents a cellular cash resolution that features deposits and withdrawals, transfers and invoice funds.

Flutterwave (San Francisco)

Valuation: US$1+ billion

Flutterwave Unicorns in Africa

Fee infrastructure firm Flutterwave raised US$170 million in a Collection C that came about in March this 12 months. The funding spherical got here at a valuation of US$1 billion, taking the corporate to unicorn standing.

Flutterwave has lately been asserting a string of partnerships, together with with MTN Group, 9PSB, and Currencycloud.

Interswitch (Nigeria)

Valuation: US$1 billion

Unicorns in Africa interswitch

Interswitch is a digital funds firm, with options spanning transactions, assortment, disbursement, card issuance and extra.

The corporate grew to become a unicorn after Visa picked up a minority stake within the firm in 2019, resulting in a valuation of US$1 billion. The deal was reportedly valued at US$200 million for 20% fairness. The corporate had IPO plans for the primary half of 2020, however the plans haven’t materialised to date.

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