The News
Airtel Money is betting on digital payments and financial services to drive revenue growth across Africa, the fintech company’s CEO told Semafor ahead of what looks set to be London’s largest initial public offering in recent years.
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what → bet → years
The mobile money arm of telecoms group Airtel Africa, which last week announced its intention to pursue an offering on the London Stock Exchange, operates in 13 African countries.
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which → announce → countries
It is reportedly looking to raise at least $800 million from the sale of shares by existing shareholders, which would give it a market capitalization of between $8 billion and $9 billion.
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which → look → billion
Airtel Money’s Chief Executive Officer Ian Ferrao, in an interview, said the company’s revenue mix had shifted in recent years to digital payments and transfers, away from depositing and withdrawing cash through its network of agents, branches and kiosks.
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mix → say → agents
Customers use the mobile money platform to pay bills, buy goods, transfer funds to people, and arrange microloans.
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Customers → use → microloans
“We’ve really put a tremendous focus on the payments and transfers side of the business because that’s higher quality revenue, better margin,” he said.
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he → put → business
The executive added that financial services — including lending, savings, and insurance products — made up only 4% of the business but were growing fast.
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services → add → business
Ferrao pointed to “wealth tech”, allowing customers to buy and sell shares on local stock exchanges, as an area in which the company sought to innovate.
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company → point → which
Know More
Airtel Money is the third-largest mobile money operator in Africa by transaction value, behind Safaricom’s M-Pesa and MTN’s MoMo.
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Money → know → Pesa
Of the countries in which it operates, Ferrao pointed to DR Congo as one of the company’s fastest growing markets.
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Ferrao → operate → markets
He also cited Chad and Niger as underpenetrated markets that showed promise.
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that → cite → promise
The offering is expected to be the largest in the UK since 2021.
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offering → expect → 2021
Ferrao said that, in the medium term, it would offer “flexibility” if the company wanted to expand into new countries and or pursue consolidation opportunities.
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company → say → opportunities
Ferrao said the deal would make the company the first major fintech listed on a global exchange, representing sub-Saharan Africa.
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company → say → Africa
“If anybody wants exposure to the continent, we will be a great asset to give exposure to the continent,” he said.
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he → want → continent
OPay, a Chinese fintech company focused on Nigeria, is looking to go public in the US in a process that would value the company at around $4 billion.
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that → focus → billion
And Flutterwave, Africa’s most valuable fintech, recently purchased open-banking platform Mono Technologies Nigeria in a bid to strengthen its case for a potential IPO.
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Flutterwave → purchase → IPO
Details of Airtel Money’s offering — such as the deal size and price range — are set to be published in October, the company said.
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company → set → October
Bharti Airtel, the telecoms company founded by Indian billionaire Sunil Bharti Mittal, spun out and listed its Airtel Africa subsidiary on the London Stock Exchange in 2019 at an IPO valuation of $3.9 billion.
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Airtel → found → billion
Airtel Africa, which has grown significantly since then, is now worth about $13 billion in total market capitalization.
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which → grow → capitalization
London-listed Airtel Africa currently owns about 78% of Airtel Money, while Chimetech Holding, Mastercard, and Qatar Investment Authority are among the firms holding minority stakes.
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Holding → list → stakes
The International Finance Corporation, the World Bank’s private investment arm, has agreed to buy $90 million of shares from existing shareholders.
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Corporation → agree → shareholders
Notable
- The listing could provide a boost for London’s stock market, which has seen companies move away in recent years, but it does not mark a “definitive” end to the city’s listings drought, wrote journalist Nils Pratley in The Guardian.
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Pratley → provide → Guardian
The Aporia
