African fintech Flutterwave raises new funds at R45-billion valuation

Africa-focused fintech firm Flutterwave said on Wednesday it had raised US$250-million in its single-biggest funding round to date, valuing the start-up at more than US$3-billion (R45-billion), as it targets mergers and acquisitions, and growing existing customer base.

The latest funding round was led by investors including Facebook co-founder Eduardo Saverin’s venture capital firm B Capital Group and Boston-based hedge fund Whale Rock Capital Management, Flutterwave said.

Founded in 2016 in Nigeria, the San Francisco-headquartered company specialises in individual and consumer transfers, one of several fintech firms aiming to facilitate and capitalise on Africa’s booming payments market.

Read: Huge spike in money flowing into African start-ups

“It (funding) gives Flutterwave the much-needed support to deliver on our plans to provide the best experience for our merchants and customers around the world,” founder and CEO Olugbenga Agboola said.

The completion of the fundraising round, more than two years after Flutterwave announced a partnership with Visa and Worldpay, highlights the growing interest in the burgeoning payments market in Africa.

Since its inception, Flutterwave has processed more than 200 million transactions valued at over $16-billion across 34 countries in Africa, the company said, adding it now served 900 000 customers.

Unicorn

“Having been investors in Flutterwave since 2017, we have had a front-row seat in seeing it establish itself as a leading payments company in Africa as it drives adoption of seamless digital payments experiences for merchants and consumers alike,” said David Glynn, managing partner of Glynn Capital.

Flutterwave is one of the biggest African unicorns, start-ups valued at more than $1-billion, as the prospect of a cashless Africa has triggered a scramble for control of its payments platforms.  — MacDonald Dzirutwe, (c) 2022 Bloomberg LP