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Flutterwave Acquires Disha

Nov 12, 2021   •   by   •   Source: Proshare   •   eye-icon 2064 views

Friday, November 12, 2020 / 12:17 PM/ By CSL Research / Header Image Credit: Flutterwave

 

Accordingto news reports, Flutterwave, a digital payment platform, has acquired Disha, acontent creator. This is Flutterwave's first acquisition since it was launchedin 2016. Disha, a content creator, targets global creators and influencers,providing tools to create a onepage site to curate and share links, content,portfolios and a checkout system to receive payments. Disha was in the newsearlier in the year, stating plans to shut down due to certain shortfalls withthe platform's vision and other misalignments. The acquisition amount was notdisclosed. Recently, Flutterwave Inc was seeking fresh funding at a valuationof US$3bn or more, a figure that was to roughly triple its last valuation.

 

Fintechvaluations remained very high in the nine months of 2021 as investors continuedto see the space as attractive. According to CB Insights, following arecord-breaking Q2 in the world of Fintech, investments in Fintech continued toclimb to new highs in Q3 2021. Total Fintech funding in Q3 2021 grew 161% y/yto reach US$31bn. The yearly sum so far of US$91.5bn is already almost double2020's full-year total, and there is still a quarter to go.


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Fundingactivity grew in nearly all FINTECH subsectors except for wealth tech andcapital markets tech. The digital lending, banking, and SMB FINTECH sectors sawthe most pronounceddeal activity growth quarter on quarter.

 

Currentvaluations of Fintech are becoming significantly higher than those of manybanks. These developments have led many banks with a vibrant payment system toconsider either operating the payment business as a subsidiary like GuarantyTrust Bank has done or selling a stake of their payment business like FBNHoldings plans to do with First Monie. In our conversation with the bank andalso based on communications from previous conference calls, the bank has beenconsidering selling a stake in First Monie. Firstmonie is an official servicefrom FirstBank through which customers in unbanked or underbanked regions canprocess financial requests through registered Agents and existing businesses.

 

Nigeria'ssignificantly under-tapped digital payments industry is poised for significantgrowth. A myriad of factors across industry fundamentals, positive countrydemographics, and regulatory support have formed the base of expectedaccelerated growth for the Fintech industry in Nigeria. This expectation hasreceived much attention from investors, which has led to significantinvestments as existing players look to position for future growth. The Fintechindustry in the country has seen funding rounds from various global investorssince 2014, either through equity or grants. Fintechs in Nigeria raised over US$500mbetween 2014 and 2020 and with reports of over US$500m raised in the first9months of 2021, the industry has attracted c.US$1bn. Increased funding, highvaluations, and successful exits point to the fact that digital engagement ofcustomers which intensified during the pandemic is here to stay.

 

Toincrease the competition in that space, earlier in the month, MTNN notified theexchange that it has received an approval in principle (AIP), dated 4 November2021 from the Central Bank of Nigeria, for the license application for theproposed MoMo Payment Service Bank Limited alongside Airtel Africa for its SMARTCASHPayment Service Bank Limited.


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