**Flutterwave Merges with Mono in a $25-40M Deal: A Rare Exit for a Nigerian Startup**
I just got word that Flutterwave, Africa’s largest fintech company, has made a major move in the continent’s fintech market. The company has acquired Nigeria’s Mono in an all-stock deal valued between $25 million and $40 million. This is a huge deal for the African fintech space and a rare exit for a Nigerian startup.
So, who are the players here? Flutterwave is the largest fintech company in Africa, with a massive payment network. By acquiring Mono, they’ll be able to offer their customers a more comprehensive set of financial services, including account verification, risk assessment, and one-time or recurring bank payments. Mono, on the other hand, is an open banking startup known as the “Plaid for Africa.” They’ve built APIs that enable companies to access bank data, initiate payments, and verify customer information.
The acquisition is a win-win for both parties. Mono’s investors, such as Tiger Global and Common Catalyst, have made a killing on their investment, some even seeing returns of up to 20x their initial investment. Meanwhile, Mono will continue to operate as an independent product, offering its services alongside Flutterwave’s existing offerings.
Mono has made some impressive strides in its relatively short existence. The company has raised around $17.5 million from investors and has powered over 8 million checking account linkages, covering around 12% of Nigeria’s banked population. That’s a big deal, folks. They’ve also delivered over 100 billion financial data points to lending companies and processed tens of millions in direct bank payments. Their clients include the likes of Visa-backed Moniepoint and GIC-backed PalmPay.
So, what does this mean for the future of fintech in Africa? The acquisition is expected to enhance Flutterwave’s vertical integration, allowing them to offer a more comprehensive suite of financial services to their customers. With Mono’s infrastructure, Flutterwave can now provide onboarding and identification checks, checking account verification, data-driven risk assessment, and one-time or recurring bank payments all within a single stack. This will enable Flutterwave to expand its services and reach more customers across Africa.
The acquisition is also a testament to the growing recognition of the importance of open banking in Africa’s financial landscape. It’s a vote of confidence in Mono’s innovative approach to financial services, which has enabled companies to access bank data, initiate payments, and verify customer information.
As a side note, this deal is a rare example of a successful exit for a Nigerian startup, a country with a relatively underdeveloped exit culture. It’s a significant milestone for Mono, which has emerged as a leading player in the African fintech market. The deal is also a testament to the growing importance of open banking and the need for companies to combine payment infrastructure with data intelligence.
The acquisition is expected to have a significant impact on the African fintech market, which is expected to experience significant growth in the coming years. As the market continues to evolve, companies that are able to integrate multiple services and provide a seamless user experience will likely emerge as leaders in the industry.
