Senegal-based Wave raises $137m in debt to expand financial affordability

Africa’s fastest-growing mobile money platform, Wave, has raised $137 million in debt financing led by Rand Merchant Bank (RMB) and a consortium of global development finance institutions, including British International Investment (BII), Finnfund, and Norfund. The funding will be deployed to advance its mission of making financial services affordable and accessible to users.

Wave, co-founded by Drew Durbin and Lincoln Quirkmet in 2018, possesses more than 150,000 agents and 3,000 employees serving over 29 million active users monthly across eight West African markets. The latest funding will help the Senegal-based startup bolster its working capital and include underserved communities in the expansion of its mobile money and financial services.

“We started Wave to make financial services radically more affordable and accessible. I’m thrilled about this funding, it means we can help even more people by delivering the best possible product at the lowest possible price,” said Drew Durbin, CEO of Wave.

The fintech company’s mobile-first model, structured at affordable fees, with consistent customer service and innovative designs, has been its strongest selling point to users who are excluded from formal financial services. The investment represents a major milestone for the startup and mobile money acceleration in Africa.

“It reflects growing confidence in our model and our mission: to build radically inclusive financial infrastructure that serves everyone, especially those traditionally left out by the formal banking system,” said Coura Sene, Regional Director and Head of Public Affairs at Wave.

According to RMB, the collaboration is a testament to supporting innovative businesses that are transforming lives and economies. It added that the investment will allow Wave to scale its reach and deepen its impact in key markets like Senegal and Côte d’Ivoire.

“At RMB, we are proud to lead this landmark financing round for Wave, which is redefining financial inclusion across Africa. This collaboration is a testament to the power of strategic capital in unlocking inclusive growth across the continent,”  said Sibusiso Tashe, Co-Head of Leveraged Finance at RMB.

In 2021, Wave rose to unicorn status with a $200 million Series A funding, becoming Francophone Africa’s first unicorn. While Durbin is the CEO, Quirkmet serves as Head of Products. A year later, Wave was the only African company among the 50 companies on the Y Combinator list of companies that generated the highest revenue for the year. The company shares the privilege with prominent global companies such as Monzo Bank, Coinbase, Zapier, Webflow, and Stripe. 

Also Read: Wave is the only African company in Y Combinator’s global top 50 list by revenue.

About Wave 

Before Wave’s birth, the founders first launched Sendwave in 2012 to address high fees for international money transfers to Africa. After experiencing the challenges of domestic mobile money in Africa, they realised the need for a better mobile money platform. In 2021, they sold Sendwave to WorldRemit for $500 million and focused on building Wave.

While it is a peer-to-peer money transfer service that leverages mobile money accounts instead of traditional bank accounts, customers have the option to make deposits and withdrawals at physical agent locations without incurring any fees.

“Customers can make deposits and withdrawals at physical agent locations without paying a fee, or they can use a smartphone app that takes a flat 1% cut of the money sent,” Drew explains.

In addition, the Senegal-based startup allows users to settle bills without being subject to additional charges and offers instant airtime purchases and does not impose fees for bill payments, unlike its competitors. The company provides users who lack access to smartphones with a complimentary QR card, facilitating transactions with agents who can establish accounts, accept deposits, and process withdrawals.

In major markets such as Côte d’Ivoire, Senegal, and Gambia, Wave has helped promote financial services by ensuring low-cost transfers and bill payments are accessible to low-income populations, thereby boosting financial inclusion. Its growth has also been deepened by strategic partnerships with local regulators, government, and financial institutions.