Nigerian fintech company Flutterwave Inc. plans to acquire fresh funding at a valuation of $3 billion or more, reports suggest. This new figure will almost triple its present valuation.
According to sources familiar with the situation, the fintech unicorn in Africa has been in talks with potential investors. As such, the possibility of a new series of funding just might be around the corner, upon an agreement of terms of the funding rounds.
The fintech startup, with offices in Lagos and San Francisco, was founded in 2016 as a Nigerian and U.S.-based payments company but has since then amassed a name for itself.
The company, which has an infrastructure to reach over 33 African countries, attained unicorn status in March after a $170 million series C funding. The fintech startup had closed a $35 million Series B in 2020, two years after raising $20 million Series A funding.
Speaking on the funding in March, Flutterwave CEO, Olugbenga Agboola hinted at the possibility of an IPO listing and creating exit tools for its investors.
“Like every other startup, we’re thinking about ways to create exit tools for our investors. So, a listing is very much in our plans, but for now, we’re focused on giving the best value to our customers,” the CEO said.
If this latest report is anything to go by, then that IPO listing might not take place anytime soon. On the other hand, it might be part of a larger strategy to improve its valuation ahead of a possible listing at the New York bourse.
One thing is sure though, the startup is really working on perfect exit tools for its investors.
Africa’s payment giant
Flutterwave has continued to position itself as one of Africa’s top payments technology businesses. According to details from its website, the startup accepts payments from anywhere and enables the creation of MasterCard and Visa virtual cards, amongst many other payments services.
The unicorn also announced its intention to collaborate with PayPal Holdings Inc in March, enabling the U.S. payment giant’s customers to pay African merchants using Flutterwave’s platform.
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Flutterwave, which has seen a 225% compound annual growth rate in revenue between 2018 and 2020, has also announced a partnership with CurrencyCloud, a simplified multi-currency payment network in Europe and the United States. This partnership allows its customers to seamlessly receive money globally via unique virtual accounts.
As of March, Flutterwave says it now services more than 300,000 businesses across the world and has processed over 140 million transactions, which are worth over $9 billion. The company facilitates cross-border transactions across Africa for notable companies like Uber Technologies Inc., Facebook Inc., and Booking.com, to name a few.