Moniepoint raises $110m to become Africa’s latest unicorn

Moniepoint has raised $110 million in equity financing, achieving unicorn status in the process.

Its series C investment was led by Development Partners International’s African Development Partners (ADP) III fund. Other new investors include Google’s Africa Investment Fund and Verod Capital. Global impact firm, Lightrock, an existing investor, also participated in the funding round.

According to the fintech, the capital raised will be used to accelerate its growth across Africa and build an all-in-one, seamlessly integrated platform for businesses. This platform will offer services such as digital payments, banking, foreign exchange, credit, and business management tools.

According to the Financial Times, Moniepoint had previously raised $55 million from investors, and its new funding series has raised its valuation to at least $1 billion. The fintech is now the seventh startup unicorn on the continent, following the footsteps of Interswitch, Opay, Flutterwave, Wave, Andela, and MNT Halan, according to data from WeeTracker’s unicorn tracker.

Moniepoint’s capital raise comes amid a general slowdown in funding for African start-ups. According to the funding tracker Africa: the Big Deal, these start-ups raised $1.4 billion in the first three quarters of the year, a 38 percent decline from the same period last year.

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The fintech, which recently won the best bank for SMEs at BusinessDay’s Banks and other Financial Institutions (BAFI) Awards, gained popularity after a cash crunch crisis in 2023. It recently solidified its market share after technology upgrades grounded many traditional bank apps. It stated that it currently processes over 800 million transactions, with a monthly total value exceeding $17 billion, while maintaining profitability.

It stated that it has experienced a 2,000 percent growth since entering the personal banking space over the past year.

Tosin Eniolorunda, founder and group chief executive officer of Moniepoint Inc., said, “The proceeds from this raise will speed up our efforts to drive financial inclusion and support Africa’s entrepreneurial potential. I want to sincerely thank the entire Moniepoint team for making this achievement possible.”

Adefolarin Ogunsanya, Partner at Development Partners International, added, “A profitable business led by an excellent leadership team with clear strategic vision, Moniepoint is well positioned to continue its impressive growth trajectory while driving financial inclusion for underserved businesses and individuals across Africa.”