Moniepoint Inc., a Nigerian and US-based fintech company known for its business-focused banking services, is poised to acquire Kopo Kopo Inc., a Kenyan fintech firm renowned for providing digital financial services, including unsecured short-term loans, to small and medium-sized enterprises (SMEs) in Kenya.
The acquisition, which involves Moniepoint acquiring 100% of Kopo Kopo’s shares, has gained approval from The Competition Authority of Kenya. The authority conducted a comprehensive analysis of the merger’s potential impacts and concluded that it is not likely to adversely affect competition within the digital credit market. Additionally, no negative implications for public interest arising from the transaction were foreseen.
Tosin Eniolorunda, Group CEO of Moniepoint Inc., expressed the company’s enthusiasm for the acquisition, stating, “We have a publicly stated interest in Kenya as part of our mission to provide financial happiness for people across Africa. We are delighted to have taken the first step by securing regulatory approval for our plans to provide financial happiness to Kenyans and look forward to progressing the transaction. A further update will be given when appropriate.”
The Competition Authority of Kenya noted that transactions involving merging parties with a combined turnover or assets exceeding Ksh. 1 Billion are required to seek approval from the authority before proceeding. The Moniepoint-Kopo Kopo merger met this threshold, prompting a mandatory notification to the authority for further analysis in accordance with the Competition (General) Rules of 2019.
Moniepoint, formerly known as TeamApt, boasts a successful eight-year history in the Nigerian payments industry. In addition to payment processing, Moniepoint offers vital financial services to SMEs, including working capital loans and accounting solutions.
Having secured funding of approximately less than $100 Million, Moniepoint’s most recent funding round occurred in August 2022, raising $50 Million and led by QED Investors, a US-based venture capital firm specializing in fintech investments.