In June, we reported that Moniepoint is planning to leverage M&A for its next growth stage following the appointment of Ross Strike as its Head of M&A and Investor Relations.
Also, during its rebranding from TeamApt to Moniepoint, the company disclosed its plan to expand into East Africa and North Africa, which will be dependent on where it has “identified large markets where millions of businesses are underserved”.
About a month after Moniepoint co-founder and CEO, Tosin Eniolorunda told The Africa Report that it intends to expand into Kenya and Tanzania, the Competition Authority of Kenya (CAK) announced today that it has approved the Nigerian fintech startup's plan to acquire 100% shares in Kenyan fintech, Kopo Kopo.
“We have a publicly stated interest in Kenya as part of our mission to provide financial happiness for people across Africa and are delighted to have reached the milestone of securing regulatory approval for our plans,” says Eniolorunda.
CAK said, “This approval has been granted based on the two key considerations during the merger analysis that; first, the transaction is unlikely to negatively impact competition in the market for digital credit; and second, the transaction will not elicit negative public interest concerns.”
Kopo Kopo is incorporated in the U.S. but operates in Kenya, offering digital financial services to local businesses, primarily short-term business loans. The company's loan product constitutes 4% of the online lending market share in Kenya.
Moniepoint and Kopo Kope offer some similar services in their Nigeria and Kenya bases, respectively. For instance, both fintech startups offer credit, business management tools, and banking solutions such as savings and investments.
“The market structure, therefore, will not change post-merger since the acquirer is not involved in the same business activity in Kenya, as the target,” according to the Kenyan competition regulator.
In Nigeria, Moniepoint operates the largest distribution network for financial services in Nigeria, and over 33 million people use their cards on our POS terminals monthly across every local government in Nigeria. The company also claims that on average a new Moniepoint terminal gets activated in Nigeria every 30 seconds, surging its POS request by 100%. In Q1 2023, Moniepoint processed over a billion transactions, with a total processing value of $43 billion.
The fintech startup has raised approximately less than $100 million, with its most recent funding round in August 2022 securing $50 million pre-Series C led by QED Investors, a US-based venture capital firm focusing on Fintech investments.
A few days ago, Moniepoint launched a retail banking product in Nigeria to further support the businesses that use its products. With this acquisition, the fintech company will possibly expand its offering into Kenya.