Nigerian Fintech Company, Flutterwave secures $170m funding increasing the company’s valuation to $1bn
Nigeria-founded payments company Flutterwave has raised $170 million from investors to expand its customer base, the fund raise brings the total investment in Flutterwave to $225 million and values the company at $1 billion.
Founded in 2016 by Nigerians, Iyinoluwa Aboyeji, 29, and Olugbenga Agboola, 35.
The company is headquartered in San Francisco, and specializes in individual and consumer transfers. It is Africa-focused.
Flutterwave is one of several fin-tech groups aiming to facilitate and capitalize on a booming African payments market driven by increased mobile phone use and faster internet speeds.
Flutterwave has processed over 140 million transactions worth over $9b to date and serves more than 290,000 businesses including the likes of Uber, Flywire, Booking.com, and Facebook. It is also the African payment provider for Worldpay clients around the world and has a deal with Visa to issue physical and virtual cards and process payments using the US giant’s card rails.
The company helps merchants accept payments both online and at the point-of-sale through a host of methods, including cards, mobile money and bank transfers.
In a statement today, the company said the funding was part of a Series C round led by growth-equity firms, Avenir Growth Capital and Tiger Global Management, with participation from new and existing investors.
The completion of the fundraising round, a little more than a year after Flutterwave announced a partnership with Visa and Worldpay, highlights the growing interest in the burgeoning payments market in Africa.
Agboola says: “When Flutterwave was founded in 2016, the payments landscape in Africa was highly fragmented so the goal was to build a pan-African platform that simplified payments for everyone. We look forward to increasing our investments across the continent and deepening the impact our platform has on lives and livelihoods as we take more businesses in Africa to the World, and at the same time continue to bring more of the World to Africa.”
The digital payments market in North Africa and the Middle East is set to grow at a compound annual rate of 13.3% until 2026, driven by mobile phone and Internet penetration, according to Mordor Intelligence. It’s “crucial for the region to have an underlying real-time infrastructure in place to enable these payments”, Mordor says.
What other plans does Flutterwave have? The African fintech giant is open to the idea of acquiring smaller players in the African fintech space and plans to go live in North Africa.