Kenya Fintech Association

Flutterwave, Africa’s largest fintech company, has acquired Mono, a Nigerian open banking startup. The deal, structured as an all-stock acquisition, is valued between $25 million and $40 million.

The acquisition combines two significant players in the African fintech infrastructure landscape. Flutterwave operates a wide-ranging payments network, while Mono provides APIs that enable businesses to access bank data and facilitate payments.

Acquisition Details

The acquisition allows investors in Mono to recoup their capital, with some early backers potentially seeing returns of up to 20x based on the value of the Flutterwave stock received. Mono will continue to operate as an independent product following the acquisition.

Mono’s Functionality and Impact

Founded in 2020, Mono functions similarly to Plaid, utilizing APIs to allow users to share their bank information with consent. This enables financial institutions to analyze financial data, including income, spending habits, and repayment capabilities. Mono addresses the challenge of inconsistent access to bank data across African markets, where credit bureaus are limited and fintech companies often rely on bank transaction histories for credit assessments.

Mono’s User Base and Data Processing

Mono has reportedly powered over 8 million bank account linkages, representing approximately 12% of Nigeria’s banked population. The company claims to have delivered 100 billion financial data points to lending companies and processed millions in direct bank payments. Clients include Moniepoint Group and PalmPay.

Flutterwave’s Strategic Expansion

For Flutterwave, which facilitates payments in over 30 African countries, the acquisition enhances its vertical integration. The company can now offer a broader suite of services, including onboarding, identity verification, bank account verification, risk assessment, and bank payment processing.