The Harvest Is Near As Acquisition Era Begins in African Fintech Scene

This is the playbook: by 2024, many exits will happen via acquisitions in the African startup scene. Yes, the biggest species will swallow the not-so-big as the industry evolves. Early this year, Tekedia Capital exited a startup via that playbook. acquisition.

Why is that going to happen? The unicorns and the best of the bests will need to have larger scale before they can IPO. And one way of doing that is buying other companies instead of growing organically.

Moniepoint does a TPV of $14 Billion (with B) monthly in Nigeria, making it one of the most important layers in the Nigerian financial sector. But to sustain a valuation in the range of $2-3 billion, it needs an African playbook. That is the reason it is buying and shopping, from PayDay to now Kenya’s Kopo Kopo:

“The Competition Authority of Kenya has approved the proposed acquisition of 100% shares in Kopo Kopo by Moniepoint unconditionally. 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 arising from the transaction”.

Moniepoint, a Nigerian Fintech company that provides an all-in-one payments, banking, and operations platform for businesses, has been granted approval to acquire Kenyan Fintech Kopo Kopo.

Moniepoint acquisition of Kopo Kopo, received clearance from the Competition Authority of Kenya after a thorough analysis of the merger’s potential impacts was conducted.

The season of harvest is here and more exits will happen. I have expanded the size of my bank account to accommodate more digits as the one they gave me as a village boy was short! Yes, that sound of Lakunle to Sidi in Wole Soyinka’s  The Lion and the Jewel comes across:  “I own only the shorter companion dictionary, but I have ordered the Longer One – you wait!”. #build and upgrade your digits.

This is the playbook: by 2024, many exits will happen via acquisitions in the African startup scene. Yes, the biggest species will swallow the not-so-big as the industry evolves. Early this year, Tekedia Capital exited a startup via that playbook.

Why is that going to happen?… pic.twitter.com/uvq5x5JziI

— Ndubuisi Ekekwe (@ndekekwe) August 22, 2023

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