Nigerian born, Africa-focused fintech firm Flutterwave plans to scale it big with a listing on Nasdaq. This comes after the fintech giant has obtained a switching and processing licence for electronic payments in Nigeria as it seeks to expand across the region. The licence comes at time when the Lagos- and San Francisco-based firm is planning an initial public offering on the Nasdaq while battling allegations of financial misconduct, including claims of money laundering in Kenya and irregularities related to stock options and bullying of staff in Nigeria, its biggest market.
Flutterwave, valued at more than US$3-billion and backed by B Capital Group and Tiger Global Management, plans to use the funds raised during the IPO to expand operations in its existing markets and enter new ones in Africa.
This is “an important milestone in our growth story”, Oluwabankole Falade, Flutterwave’s chief regulatory and government affairs officer, said in the statement. “As a switch, we have more responsibilities and will continue to work with regulators to ensure we meet and exceed their expectations.”
The San Francisco- and Lagos-based company will use the funds to expand operations in its existing markets and enter new ones in Africa, according to chief financial officer Oneal Bhambani, who along with three others joined the company in June from American Express.
“We have the attractive market potential and opportunity to do so now,” Bhambani said in an interview. The listing is an initiative of the payments company that’s “reaching the scale and trajectory comparable to what other investors seemed to invest in the public markets”, he said without giving further details.
Flutterwave, valued at more than $3-billion (R50-billion) and backed by B Capital Group and TPG, has tapped talent from American Express’s Kabbage unit to bolster corporate governance ahead of the planned IPO, Bhambani said, without giving a timeline for the share sale.
Kenya’s high court froze Flutterwave’s bank accounts under anti-money laundering rules in July and the central bank said it isn’t licensed to operate payments services in the country. The company has for months been struggling with allegations in the media and lawsuits — including claims of refusing former employees stock rights, harassment and bullying — casting doubts over its IPO plans.
Flutterwave denied accusations of financial misconduct, including claims of money laundering in Kenya and irregularities related to stock options, and said it has taken action against those found culpable for any form of harassment in the company.
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Meanwhile, the company, which specialises in cross-border transactions, is expanding into lending. Flutterwave Capital will provide collateral-free, digital loans to business owners in Nigeria.
“We are a growth company, we have a tremendous opportunity to invest and really develop solutions for the largest enterprises in the world that transact in Africa,” Bhambani said. It plans to begin lending by end of this year, he said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry