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 to Technext, 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.
More on Moniepoint’s-Kopo Kopo acquisition
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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