Deal Summary
Moniepoint Inc, a financial services holding company offering payment, credit, business management, and banking services, secured $110 million in a Series C round led by Development Partners International (DPI) with Google, Verod Capital, and Lightrock. This funding elevates Moniepoint’s valuation to over $1 billion, marking its “unicorn” status. The financial services group, founded in 2015, has developed a suite of payment solutions targeted at African SMEs. Moniepoint (formerly TeamApt) aims to diversify its offering beyond payments to become a full digital bank for SMEs and pursue inorganic growth in new markets and geographies like Kenya and Tanzania. In Kenya, Moniepoint has received approval from the Competition Authority of Kenya to acquire Kopo Kopo.
Terms
- Fund Managers: Development Partners International, Verod Capital, Google, Lightrock
- Funds: African Development Partners III Fund (DPI), Google African Investment Fund (Google), Verod Capital Growth Fund III (Verod), Lightrock Africa Fund I (Lightrock)
- Deal Type: Series C Equity Funding
- Target: Moniepoint Inc.
- Target Revenue: $149m (2022)
- Investment Amount: $110m
Deal Rationale
Currently profitable, with revenues doubling from $63m in 2021 to $149m in 2022 (138x revenue growth between 2018 and 2022), Moniepoint exemplifies fast growth potential backed by a recurring customer base. Moniepoint’s growth strategy hinges on continuous evolution from its anchor product—digital payments processing—to a holistic banking solution for businesses (SMEs and enterprises) that cater to needs beyond payments. Moniepoint, similar to Nomba & OPay—which became a unicorn in 2021—is one of the large payment providers in Nigeria that leverages on-the-ground distribution networks to acquire SMEs and maximise geographical spread. Moniepoint’s offline network of agents allows it to compete against traditional banks with mature distribution networks linked to branches.
Over the years, the company has expanded its customer base from POS merchants providing cash-in-cash-out services to diversified merchants selling various goods and in need of additional financial services like business loans. Moniepoint's growth will be anchored
About the Fund Managers
Established in 2007, Development Partners International LLC is a London-based private equity firm specialising in growth capital and buyout investments with a capital base of $1.1 billion. DPI targets profitable or cash-flow-positive companies that are growing organically or through acquisitions. The firm manages six funds, including the African Development Partners III, with a commitment of $900 million. DPI has made investments in over 33 companies with eight exits. DPI emphasises strong partnerships with portfolio companies, working closely with management teams to create value and identify exit opportunities. DPI typically invests between $10 million and $120 million per investment.
Established in 2008, Verod Capital Management is a leading private equity firm specialising in mid-market, growth capital, and buyout transactions. The firm invests in sectors like financial services, healthcare, consumer goods, media and technology, real estate, and energy. Verod aims to create value by partnering with strong, results-driven management teams to build sustainable enterprises. Known for its strategic exits, including CSCS and Daystar Power, Verod has made over 20 investments and typically invests between $3 million and $30 million.
Founded in 2009, Lightrock is a London-based private equity and venture capital firm specialising in buyout and growth capital investments. Lightrock invests in technology and growth sectors globally, with over 100 investments, mainly in Europe, India, Africa, and Latin America. Lightrock has raised roughly $2bn across three funds, and its focus includes fast-growing sectors like financial technology and healthcare, seeking high-potential, impact-driven companies.
Google launched its Africa Investment Fund in 2021 with a target of $50 million dedicated to early—and growth-stage African startups. The fund is designed to take equity stakes in high-growth African startups, providing them with capital and access to Google's extensive resources, technologies, and network. Since its inception, the fund has invested in several notable companies, including SafeBoda, a Ugandan transport app; Carry1st, a South African mobile game publishing platform; and Lori Systems, a Kenyan logistics platform.
