Moniepoint, a well-established Nigerian fintech company, has completed its acquisition of Kopo Kopo Inc., a distinguished Kenyan fintech player known for providing digital financial solutions, especially unsecured short-term loans, catering to small and medium-sized enterprises (SMEs) in Kenya.
This acquisition, a significant milestone for both entities, has recently gained approval from The Competition Authority of Kenya, following the fulfillment of the authority’s specified financial criteria.
The regulatory authorities have stressed the importance of formal approval from the authority for transactions involving merging entities whose combined turnover or assets exceed Ksh. 1 Billion.
The amalgamation of Moniepoint and Kopo Kopo comfortably met this financial threshold, necessitating a mandatory notification to the regulatory body for further scrutiny, in compliance with the Competition (General) Rules of 2019. The regulatory body also conducted a comprehensive assessment of the potential impacts of the merger on the financial market.
The assessment yielded two crucial conclusions. Firstly, the integration of Moniepoint and Kopo Kopo is anticipated to have no adverse competitive effects within the digital credit sector. Secondly, there are no anticipated negative effects on the broader public interest resulting from the transaction.
Moniepoint, previously known as TeamApt, boasts an impressive eight-year legacy in Nigeria’s dynamic payments industry. Expanding beyond payment processing, Moniepoint now offers a range of essential financial services tailored to SMEs. The company has recently unveiled plans to venture into the consumer banking sector, introducing a consumer-facing mobile app and debit card. These debit cards will be issued to users by payment processors Mastercard and Verve.
Led by Tosin Eniolorunda, Moniepoint has achieved profitability since 2020. The company, which rebranded at the beginning of the year, has been steadily expanding its influence and reach across the continent. With backing from prominent institutional investors such as QED Investors, Novastar, Lightrock, BII, FMO, Global Ventures, Endeavour Catalyst, and New Voices Fund, Moniepoint is on track to become a Unicorn.
Throughout its journey, Moniepoint has secured substantial funding, totaling around $100 Million. A significant moment was its most recent funding round in August 2022, which raised $50 Million and was led by U.S.-based QED Investors, a key player in fintech-focused venture capital. This strategic acquisition of Kopo Kopo aligns seamlessly with Moniepoint’s broader vision of enhancing financial inclusion and innovation across Africa. The synergistic merger is set to create new avenues for the convergence of technological expertise and financial innovation.
According to a report by Intelpoint on the Nigerian Financial Services Market, MoniePoint boasts the second-largest network with 303,946 POS agents spread across the country. Combined, both companies control 867,208 agents, constituting 57.8 percent of the POS agents in the country.