In a resounding testament to its robust performance and growth trajectory, HabariPay, the fintech subsidiary of Guaranty Trust Holding Co Plc, announced a remarkable N2.3 billion profit before tax for the fiscal year 2023.
This impressive figure represents a staggering 147.9% surge compared to the N944.7 million recorded in the previous year, as revealed in the company’s full-year 2023 financial presentation to investors.
The surge in profitability mirrors the exponential increase in revenue experienced by HabariPay during the period under review. According to the 2023 financial report, the fintech company’s gross revenue skyrocketed by an impressive 218%, reaching N4.905 billion compared to N1.542 billion in 2022. This remarkable growth was underpinned by significant advancements across all key income streams.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
“Income from Value Added Services saw a remarkable growth of 149%, driven by airtime vending revenue from direct integration with two major Telcos, as well as strategic partnerships with Value Added Service (VAS) aggregators,” the company reported.
Furthermore, the report highlighted the efficient management of interest expenses, which resulted from monthly overdraft charges on airtime purchases. HabariPay meticulously monitored airtime sales on a monthly basis, ensuring a credit balance on its overdraft account at the end of each month.
Astronomic Transaction Growth
Amidst the intensifying competition in the fintech landscape, GTCo’s HabariPay witnessed astronomical growth in transaction volumes during the year under review. The value of transactions processed on the platform surged by an astounding 8,620%, reaching N12.1 billion from N139.3 million recorded in the preceding year. Additionally, HabariPay’s international payment transactions witnessed a remarkable increase from $175,927 in 2022 to $2.3 billion in 2023, signaling its emergence as a dynamic force in the financial technology sector.
According to GTCO, HabariPay’s rapid growth underscores its commitment to innovation and empowerment in the digital economy. The company’s core operations encompass a wide array of services, including a payment gateway facilitating transactions via virtual accounts, USSD, card, and bank transfer channels. Moreover, it engages in switching verticals, value-added services such as bill payments for airtime vending, and distribution of bulk SMS processed through licensed Value Added Service Aggregators authorized by the Nigerian Communications Commission (NCC).
Evolution and Expansion from Little Beginning
HabariPay’s journey reflects an evolution from its inception as part of GTBank’s Habari super-app in 2018 to its current status as a standalone business entity within the Guaranty Trust Holding Co Plc ecosystem. Originally conceived as a multifaceted super-app offering streaming content and an e-commerce marketplace, Habari struggled to gain traction among digital users.
However, a corporate restructuring in 2020 led to Habari’s transformation into a separate entity wholly owned by GTBank, signaling the bank’s broader push into digital payments.
With the transition of Guaranty Trust Bank into a holding company in June 2021, HabariPay emerged as a standalone business offering comprehensive payment solutions, an expansive marketplace, and tailored services for small businesses. Its flagship product, Squad, combines a robust payment gateway and e-commerce platform with a Point-of-Sale business, positioning HabariPay as a formidable competitor in the payment gateway sector alongside industry giants such as Interswitch, Paystack, and Flutterwave.
As HabariPay continues to chart its course in the ever-evolving fintech ecosystem, its journey from inception to becoming a standalone entity within the Guaranty Trust Holding Co Plc ecosystem is a testament to its resilience and adaptability. From its humble beginnings as part of GTBank’s Habari super-app to its transformation into a standalone business offering comprehensive payment solutions, the company’s growth underscores its commitment to driving innovation and empowering businesses.
With its flagship product, Squad, combining a robust payment gateway with an e-commerce platform and Point-of-Sale business, HabariPay is poised to carve a niche for itself alongside industry giants. Its journey is not just a story of profits and growth but a testament to the transformative power of innovation and determination in the face of intense competition.