Nigerian fintech Moniepoint has achieved unicorn status after raising $110 million in a new Series C funding round led by the Development Partners International (DPI), and other investors, reports TechCabal.
The term “unicorn” status is used to describe tech firms with a valuation of a billion dollars or more. The new capital would be used to speed up Moniepoint’s growth across Africa and build an integrated platform for businesses.
Citing two people with direct knowledge of the deal, the report listed other investors to include Google’s Africa Investment Fund and Verod Capital; with Global impact firm, Lightrock, an existing investor, also participating in the funding round.
Moniepoint processed 5.2 billion transactions in 2023, with the new financing round to almost triple the company’s valuation, which was around $400 million in a 2022 funding round in which it raised $50 million.
Bloomberg reported at the time of the 2022 funding round that the company was eyeing a valuation of $1 billion, but that was ultimately elusive, said two investors with knowledge of the matter.
“They got the primary round at a $1 billion valuation,” one person with knowledge of the matter said, declining to be named so they could speak freely.
According to TechCabal, that post-money valuation means Moniepoint, founded in 2015, will become the continent’s eighth unicorn, joining a small club that includes MNT-Halan, Interswitch, Flutterwave, Chipper, OPay, Wave, and Andela.
The funding round also included a secondary sale with a discounted valuation, which was ideal for many investors, TechCabal reports.
A market leader in Nigeria’s agency banking sector, Moniepoint provides retail banking services and also caters to small and medium businesses. In 2023, it was second on the Financial Times list of Africa’s fastest-growing companies.
While the FT list showed Moniepoint had annual revenues of $62.6 million in 2021, the report said the company’s annualised revenue has grown to over $100 million.
While naira devaluation may have slowed growth in dollar terms, Moniepoint is said to have processed 5.2 billion transactions worth over $150 billion in 2023.
