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Flutterwave, Africa's largest fintech firm, acquired Nigerian open banking startup Mono in an all-stock deal estimated to be worth between $25 million and $40 million. The acquisition, confirmed by sources familiar with the transaction, marks a significant consolidation in the African fintech landscape.
The deal provided a substantial return for Mono's investors, who had previously invested approximately $17.5 million in the company. Sources indicated that all investors recouped their initial capital, with some early backers realizing returns as high as 20 times their investment.
This acquisition unites two key players in Africa's burgeoning fintech infrastructure. Flutterwave's extensive payments network, which facilitates transactions across the continent, will be complemented by Mono's API-driven open banking solutions. Mono's technology allows businesses to securely access customer bank data, initiate payments, and verify identities, addressing a critical need in a region where standardized access to financial information is often lacking. This lack of standardized access has historically hampered credit scoring and financial service innovation.
Founded in 2020, Mono quickly established itself as a leading open banking provider in Nigeria, drawing comparisons to Plaid in the United States. Its APIs enable users to grant consent for sharing their banking information, allowing financial institutions to analyze income, spending habits, and repayment capabilities. This functionality is particularly valuable in African markets where traditional credit bureaus often have limited reach.
While operating as an independent product, Mono's integration into Flutterwave's ecosystem is expected to enhance Flutterwave's capabilities and expand its reach in the open banking space. The acquisition signals a growing trend of consolidation within the African fintech sector, as companies seek to build comprehensive platforms and capture a larger share of the rapidly expanding digital payments market. The move positions Flutterwave to further solidify its dominance and drive innovation in financial services across the continent.
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