African fintech company, OPAY valued at $2bn after $400m funding

African fintech company, OPAY valued at $2bn after $400m funding

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Nigeria-based fintech company, Opay has raised $400 million in its latest funding round led by SoftBank Vision Fund making Opay Africa’s fifth unicorn alongside Flutterwave, Interswitch, Jumia & Fawry increasing the company’s valuation to $2 billion.

Other participants in the round were Sequoia Capital China, Source Code Capital, Redpoint China, DragonBall Capital, Softbank Ventures Asia and 3W Capital.

It was reported in May that the Fintech company looks forward to raising up to $400 million at a $1.5billion valuation from a group of Chinese investors and that kind of investment was likely to accord it Unicorn status,

Also record that , in November 2019 Opay raises $120m a week after  the company discontinue its bus hailing services in the popular city of Lagos, in Nigeria.

OPay previously counted ride-hailing and logistics services as part of its offerings. Last year, OPay closed its ride-hailing and bike-sharing businesses following a government ban and the rise of the Covid-19 pandemic.

According to Opay CEO, Yahui Zhou “Opay wants to be the power that helps emerging markets reach a faster economic development.”

The company’s technology is designed to replace cash and other legacy payment methods, helping local governments “improve financial and information security,” according to OPay. Founded in 2018, the company’s monthly transaction volumes exceed $3 billion and also boasts over 300,000 agents and more than 5 million users across Nigeria. In addition to expanding in other African countries, OPay is focused on the Middle East as well, he said.

“We believe our investment will help the company extend its offering to adjacent markets and replicate its successful business model in Egypt and other countries in the region,” said Kentaro Matsui, a SoftBank Group Corp. managing director.

No doubt fintech companies has come to stay and disrupt the financial company.

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