Moniepoint, a business banking and payments platform in Africa, has gotten regulatory approval from the Competition Authority of Kenya (CAK) to acquire 100% of Kenyan fintech startup Kopo Kopo.
In a statement, CAK says the approval was granted based on two considerations: first, that the deal is “unlikely to negatively impact competition” for digital credit in the market; and second, that the transaction “will not elicit negative public interest concerns”.
As part of the deal, Kopo Kopo’s 98 employees will retain their employment under the same terms, with the regulator anticipating that the acquisition will lead to the creation of new jobs in Kenya.
For Moniepoint, which currently operates in Nigeria, the acquisition will allow it to expand into Kenya as it looks to boost its footprint in the region. The terms of the deal are undisclosed.
Founded in 2011 and headquartered in Nairobi, Kopo Kopo provides digital financial services, including credit and payment offerings, to small and medium-sized enterprises (SMEs) in Kenya. According to Crunchbase, the firm has so far raised $5.6 million in funding.
Launched in 2015 with its headquarters in London, UK, and offices in Nigeria, Kenya and the US, Moniepoint offers payments, banking, credit and business management tools to more than 600,000 businesses. It is currently Nigeria’s largest card payments operator with $12 billion processed monthly.
The acquisition news follows the launch of Moniepoint’s personal banking app last week, which allows users to make transfers, pay bills and buy airtime. The firm is also launching a debit card that can be used online, in ATMs and via point-of-sale (POS) terminals.
With the new rollout, Moniepoint aims to target the estimated 30 million+ people who use its POS terminals monthly.
Additionally, the new product comes with a card dispute resolution feature, allowing users to lodge disputes on failed card transactions and track the status until a reversal is made.
“Rather than a foray into new grounds, we view this as an extension of our current path, providing even better support for the businesses using our products,” says Tosin Eniolorunda, founder and group CEO of Moniepoint.
“With the personal banking app and card, customers can now make seamless payments to these businesses. This support will extend to employees as well, with the release of a salary advance feature in the coming months.”
