Acquisition of Kenyan Fintech Kopo Kopo Inc. Successfully Concluded by Moniepoint
Moniepoint, a prominent Nigerian fintech company, has completed the acquisition of Kopo Kopo Inc., a renowned Kenyan fintech player recognized for its digital financial solutions, particularly unsecured short-term loans, catering to small and medium-sized enterprises (SMEs) in Kenya. This acquisition, a pivotal milestone for both entities, recently obtained approval from The Competition Authority of Kenya, following their adherence to the authority's stipulated financial criteria. Notably, the authority mandates that any merger involving companies with a combined turnover or assets exceeding Ksh. 1 Billion must seek formal authorization before proceeding. The amalgamation of Moniepoint and Kopo Kopo fulfilled this financial threshold, necessitating a mandatory notification to the regulatory body as outlined in the Competition (General) Rules of 2019.
The regulatory assessment included a comprehensive analysis of the merger's potential impact on the financial sector. Two pivotal conclusions emerged: firstly, the integration of Moniepoint and Kopo Kopo is not projected to introduce any adverse competitive consequences within the digital credit sector; secondly, there are no anticipated adverse effects on the broader public interest resulting from the transaction.Formerly known as TeamApt, Moniepoint currently provides SMEs and consumer banking services. The company, which now goes by the name Tosin Eniolorunda, has been profitable since 2020 and is backed by big investors including QED Investors. Moniepoint has obtained significant finance, with the most recent round raising $50 million in August 2022.
The strategic acquisition of Kopo Kopo harmonizes with Moniepoint's overarching vision of enhancing financial inclusion and innovation throughout Africa. This synergistic integration is poised to create new avenues for the convergence of technological prowess and financial acumen. According to a report on the Nigerian Financial Services Market by Intelpoint, MoniePoint boasts the second-largest network, comprising 303,946 POS agents across the nation. Collectively, the two companies command 867,208 agents, representing 57.8% of POS agents in Nigeria.
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