Mobile money dominates fintech investment
GP BULLHOUND’S SECTOR TAKEAWAYS
Sources: Capital IQ, press releases (as of 30 September 2021); Note: 1) TechCrunch; 2) The Global Payments Report 2021,
Worldpay; 3) GP Bullhound research, Pitchbook
Africa represents a large and relatively untapped opportunity
A rush to fund Fintech in Africa
▪ Fintech investments in Africa are accelerating at a record pace, improving financial inclusion in a region that traditionally
suffers from limited access to formal financial services such as banking, credit, and insurance.
▪ The region represents a large and relatively untapped opportunity that is poised to drive the next wave of growth for
large internet companies given the young demographics (high proportion of the population are under 25 years old and
digitally native), with increasing mobile and internet penetration and growing economic power.
▪ With e-commerce poised for explosive growth, topping $29bn
next year, the region has seen rapid adoption of mobile
wallets due to the high underbanked population coupled with relatively high mobile penetration. Digital / mobile wallet
payments are expected to grow by 45% to account for over one-fifth of e-commerce spend by 2024
▪ There was a significant uptick in fintech investments in Africa in Q3 2021. Funding in 2021 YTD stands at over $2bn versus
c.$0.5bn for the whole of 2020
, which we believe shows the current and future prominence of digital financial services
across the continent. Notable activity in Q3 20201 included:
‒ Wave, a US and Senegal-based mobile money provider, raised a record $200m in Series A from Sequoia Heritage,
Founders Fund, Stripe, and Ribbit Capital.
‒ OPay, a Nigerian mobile-payments platform, was valued at $2bn in a latest $400m fundraising led by SoftBank Vision
Fund 2, making Opay the fifth unicorn in Africa alongside Interswitch, Jumia, Fawry, and Flutterwave.
‒ Mono, an African startup helping to connect consumers’ bank accounts to financial applications, raised $15m in
Series A from Tiger Global. This is Tiger Global’s third major investment in Africa this year after Flutterwave and
‒ Australian BNPL company Zip acquired South African-based BNPL player Payflex, showing how Africa is ripe for BNPL
in Q3 2021
DEAL DATE: AUG-21
DEAL DATE: OCT-21
DEAL DATE: SEP-21
DEAL DATE: SEP-21