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African startup Flutterwave raises $250 million for a valuation of over $3 billion

Flutterwave, an African fintech startup, has completed another investment round, raising $250 million. This has increased its valuation to over $3 billion.

The African fintech scene has been active lately, with fast-growing brands attracting investments globally. One of such companies is Flutterwave, a payment processing company that started in Lagos but has headquarters in San Francisco.

Last year, the company raised $170 million in a Series C funding led by Tiger Global and Avenir. Altogether, Flutterwave has raised $475 million.

With a valuation of $3 billion, Flutterwave is now the most valued African startup. It is followed by OPay, valued at $2 billion, and Chipper Cash.

This new capital injection will allow Flutterwave to develop and offer products that enhance its core offering. It is also looking at making acquisitions, especially those it has backed.

Flutterwave focuses on global transactions and welcomes from small to large businesses in Africa. Its API allows companies to integrate it into their online commerce websites or other businesses. However, companies outside Africa can leverage Flutterwave’s offering to expand their reach in the continent. Some of its high-profile clients include Uber and Flywire.

The company has seen tremendous growth over the last year, going from 140 million transactions worth over $9 billion to more than 200 million worth over $16 billion. It has also grown its clients from 290,000 last March to over 900,000 globally. Transactions occur across 150 currencies, and customers can pay through cards, mobile wallets, bank transfers, and Barter, Flutterwave’s product.

CEO and founder Olugbenga Agboola explains his company’s focus on small and medium scale businesses, which has contributed the most to its growth. “It was deliberate from us because we saw the opportunity in the SMB space, and how they require the same technology pie the Ubers and Netflixes of this world use. Some of this is evident is how we expanded the Flutterwave Store, which allows small businesses anywhere in Africa to create an e-commerce shop online at zero cost scale.”

He continued, “We’re becoming what we wanted to be: the infrastructure for any kind of payments. There’s no sector you look at today in Africa that you wouldn’t see Flutterwave taking a piece of that and enabling merchants and consumers to grow and scale.”

With sub-Saharan Africa already covered, Flutterwave has set its sights on Northern Africa. It will soon expand to Egypt and Morocco, stepping stones to the Middle East and Latin America. Agboola thinks it is time for Flutterwave to execute its global strategy. “We want to change our focus from just Africa to emerging markets and eventually the U.S., the U.K., Europe. Our goal is to ensure that our infrastructure powers those corridors.”

While Flutterwave has maintained a presence in the U.S., the company had not been operating there but was only there to form partnerships with the likes of PayPal and Visa. But that will change now with its flagging off of expansion into the country.

On the company’s plan to acquire startups that will strengthen its position in the financial market, Agboola said, “We plan to grow inorganically through acquisitions, and it will happen when we find a fit and see a company with the same core values or culture and goal of making payments simpler across emerging markets. So we still have plans for that.”

Written by HackerVibes

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