20/04/2021

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Airtel Africa to Sell $200 Million Stake in Mobile Money Business

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Sourced from Comms MEA

Airtel Africa is set to sell a minority stake – worth $200 million – in Airtel Mobile Commerce BV (AMC BV) to global investment company, The Rise Fund.

“The transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV,” reveals the company.

According to TechCrunch, this deal values the mobile money business at $2.65 billion with operations across 14 African countries, including Kenya, Uganda and Nigeria.

“Our markets afford the substantial market potential for mobile money services to meet the needs of the tens of millions of customers in Africa who have little or no access to banking and financial services, and this demand is driving growth,” says Raghunath Mandava, CEO of Airtel Africa.

“With today’s announcement, we are pleased to welcome The Rise Fund as an investor in our mobile money business and as a partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”

Yemi Lalude, Lead Investor for Africa at The Rise Fund, goes on to say, “we look forward to working with Airtel Africa to enhance their mobile money services, broaden its use cases and grow into new markets. With this investment in Airtel Africa’s mobile money operations, we are excited to expand The Rise Fund’s global fintech portfolio and continue to deepen our focus on improving financial inclusion in Africa and around the world.”

Edited by Jenna Delport