A few African startups have proven Africa is capable of a global economic take-over. These firms have grown to become the most valuable fintech in Africa, setting new standards and reshaping the financial ecosystem.
These trailblazing companies are revolutionising how financial services are delivered and also playing a pivotal role in the continent’s economic development.
This article provides an in-depth look at these leading fintech companies, their contributions, achievements, and the impact they are making on Africa’s financial ecosystem.
1. Flutterwave
Olugbenga Agboola
Flutterwave, founded in 2016 by Olugbenga Agboola and Iyinoluwa Aboyeji, has quickly become one of Africa’s most prominent fintech companies.
The company provides a seamless payment infrastructure for global merchants and payment service providers across the continent.
Flutterwave has raised over $225 million in funding, leading to a valuation of more than $3 billion. The company’s significant investors include Tiger Global Management, Avenir Growth Capital, and Y Combinator.
Flutterwave has forged strategic partnerships with global payment giants like PayPal, Visa, and Alipay, enhancing its capability to facilitate cross-border transactions.
Operating in over 33 African countries, Flutterwave’s payment platform supports multiple currencies and payment methods, serving more than 290,000 businesses globally.
Flutterwave’s innovative solutions have simplified the complexities of online payments and enabled small and large businesses to expand their operations across borders.
With its global influence and current plan to go public, the company is indisputably one of the most valuable fintech firms in Africa.
2. Paystack
Shola Akinlade and Ezra Olubi
Paystack, co-founded in 2015 by Shola Akinlade and Ezra Olubi, is a payment processing company that allows businesses to accept online payments via credit card, debit card, and mobile money.
The company’s user-friendly platform has been pivotal in driving the growth of e-commerce in Nigeria and beyond.
In October 2020, Paystack was acquired by Stripe, a leading global payments company, for $200 million. This acquisition marked Stripe’s first major expansion into Africa.
Paystack processes over 50% of all online payments in Nigeria, serving more than 60,000 businesses, including small startups and large corporations.
The company offers a suite of developer tools that simplify integrating payment processing into websites and mobile apps, making it easier for businesses to set up and manage their payment systems.
Paystack’s focus on providing reliable payment solutions has empowered many small businesses to enter the digital marketplace, contributing to economic growth and job creation.
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3. Interswitch
Mitchell Elegbe
Founded in 2002 by Mitchell Elegbe, Interswitch is a pioneer in the Nigerian fintech space.
The company provides integrated payment processing solutions and transaction switching services, facilitating electronic payments and digital transactions.
Interswitch is one of Africa’s first fintech unicorns, valued at over $1 billion. In 2019, Visa acquired a minority stake in Interswitch for $200 million.
Interswitch developed Verve, Africa’s leading domestic payment card scheme, which is used by over 35 million people across 22 African countries.
The company’s Quickteller platform provides a wide range of financial services, including bill payments, money transfers, and airtime purchases, to millions of users.
Instrumental in driving Nigeria’s transition to a cashless economy, Interswitch is one of the most fintech companies in Africa.
By offering robust digital payment solutions, the company has enhanced the efficiency of financial transactions and broadened access to financial services for individuals and businesses alike.
4. M-Pesa
Nick Hughes
M-Pesa was developed by Nick Hughes in 2003 during his tenure as the head of social enterprises at Vodafone, which holds a 40 percent stake in Safaricom. It was launched in 2007 in Kenya.
M-Pesa is a mobile money service that allows users to deposit, withdraw, transfer money, and pay for goods and services using their mobile phones. It is one of the most successful mobile money systems globally.
M-Pesa has over 40 million active users across Kenya and several other African countries, including Tanzania, Ghana, and Egypt.
The platform processes more than 1.6 billion transactions per month, handling over $12 billion in monthly transactions.
M-Pesa has expanded its services to include savings, loans, and insurance products, partnering with banks and financial institutions to offer a wider range of financial services.
M-Pesa has revolutionised financial inclusion in Africa by providing banking services to millions of unbanked and underbanked individuals.
M-Pesa mobile-first approach has made financial services accessible to rural and remote areas, significantly impacting economic development and poverty reduction.
5. JUMO
Andrew-Watkins-Ball
JUMO, founded in 2015 by CEO Andrew-Watkins-Ball, is a technology platform that uses artificial intelligence (AI) to provide financial services, including credit and savings products, to underserved markets.
The company partners with banks and mobile network operators to offer its services.
JUMO has raised over $120 million in funding from investors such as Goldman Sachs and Proparco.
The company has partnered with leading mobile operators like MTN and Airtel to deliver financial services across Africa.
JUMO has served over 18 million customers and disbursed more than $3 billion in loans since its inception.
By leveraging AI and data analytics, JUMO has enabled financial institutions to offer tailored financial products to individuals and small businesses with limited credit history.
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