Chinese language-backed and Africa-focused fintech platform OPay is in talks to boost as much as $400 million, The Knowledge reported as of late. The fundraising is coming two years after OPay introduced two investment rounds in 2019 — $50 million in June and a $120 million Collection B in November.
The $170 million raised to this point got here from basically Chinese language buyers who’ve jointly begun to guess giant on African startups during the last few years. A few of them come with SoftBank, Sequoia Capital China, IDG Capital, SoftBank Ventures Asia, GSR Ventures and Supply Code Capital.
In 2018, Opera, popularly recognized for its web seek engine and browser, introduced the OPay cellular cash platform in Lagos. It didn’t take lengthy for the corporate to amplify aggressively throughout the town the use of ORide, a now-defunct ride-hailing provider, as an access level to the array of services and products it sought after to supply. Since then, the corporate has examined a number of verticals — OBus, a bus-booking platform (additionally defunct); OExpress, a logistics supply provider; OTrade, a B2B e-commerce platform; OFood, a meals supply provider, amongst others.
Whilst none of those services and products has considerably scaled, OPay’s fintech and cellular cash arm (which is its primary play) is prospering. This 12 months, its father or mother corporate Opera reported that OPay’s per thirty days transactions grew 4.5x final 12 months to over $2 billion in December. OPay additionally claims to procedure about 80% of financial institution transfers amongst cellular cash operators in Nigeria and 20% of the rustic’s non-merchant level of gross sales transactions. Final 12 months, the corporate additionally mentioned it received a global cash switch license with a WorldRemit partnership additionally within the works.
OPay performs in an especially aggressive fintech marketplace. Nigeria is Africa’s maximum populous country, and with a big percentage of its other people underbanked and unbanked, fintech is arguably probably the most promising virtual sector within the nation. The similar can also be mentioned for the continent as a complete. Cellular cash services and products have lengthy catered to the wishes of the underbanked, and in step with GSMA, Africa had greater than 160 million energetic cellular cash customers producing over $495 billion in transaction price final 12 months.
Whilst fintech upstarts like OPay and Paga are looking to seize as a lot marketplace percentage as conceivable, telcos like MTN and Airtel, with operations in more than one African nations, are spinning off cellular cash provider hands as billion-dollar companies to compete as neatly.
With the cash OPay has raised to this point, it’s reasonably sudden that the rustic till final 12 months December was once most effective found in Nigeria. None of its plans to amplify to South Africa and Kenya (nations it expressed hobby in throughout its Collection B) has come to fruition but. Even supposing the corporate blamed the pandemic for those shortcomings, it has arrange store in North Africa through increasing to Egypt this 12 months. This subsequent elevate, most probably a Collection C, might be instrumental within the corporate’s plans for geographical and product choices growth. In line with The Knowledge, OPay’s valuation will build up to about $1.5 billion, thrice what it was once value again in 2019.
We reached out to OPay for affirmation however they declined to remark at the moment.