Flutterwave, Africa’s leading payments technology company, has secured USD $170 million (approximately Ksh17 billion) from a leading group of international investors as part of a successful Series C round. The round was led by growth-equity firms Avenir Growth Capital (“Avenir”) and Tiger Global Management LLC (“Tiger Global”) with participation from new and existing investors.
Founded by entrepreneur Olugbenga Agboola in 2016, the company’s valuation is considered to be valued at more than USD $1 billion (Over Ksh100 billion). The fundraise brings the total investment in Flutterwave to USD $225 million and is one of only a very small number of African fintech companies to have raised significant funds in a period of widespread disruption and economic uncertainty.
The new funds will allow Flutterwave to execute an ambitious growth strategy to become a leading global payments company, empowering SMEs and multinational brands by connecting the highly fragmented African digital payments landscape. Flutterwave will invest the new capital to accelerate customer acquisition in existing and international markets, as well as develop complementary and innovative products such as the newly launched Flutterwave Mobile, an app to help accelerate ecommerce growth as a result of the success of the Flutterwave Stores.
This fundraise comes at a time when Covid-19 has accelerated the shift to digital payments in Africa, which has contributed to Flutterwave’s exceptional revenue growth of 226% CAGR from 2018-2020.
“When Flutterwave was founded in 2016, the payments landscape in Africa was highly fragmented so the goal was to build a pan-African platform that simplified payments for everyone,” said Flutterwave founder and CEO Olugbenga ‘GB’ Agboola.
“As we look to the future, our focus remains the same which is to stand by our 290,000 merchants across Africa every day as they strive to build their mom-and-pop stores into global businesses. We look forward to increasing our investments across the continent and deepening the impact our platform has on lives and livelihoods as we take more businesses in Africa to the World, and at the same time continue to bring more of the World to Africa,” he added.
This latest funding round was led by Avenir and Tiger Global with participation from DST Global, Early Capital Berrywood, Green Visor Capital, Greycroft Capital, Insight Ventures, PayPal, Salesforce Ventures, Tiger Management, WorldpayFIS, and 9yards Capital. Avenir and Tiger Global have funded some of the brightest tech start-ups in the world including Current, Latch, Savage x Fenty, JD.com and Facebook.
“Flutterwave is at the forefront of innovation in payments technology, and we are excited to support the team as they build the last available payments infrastructure frontier in the world – connecting merchants and consumers intra-Africa and globally,” Jamie Reynolds, Partner at Avenir Growth Capital.
Flutterwave was founded with the mission to create endless possibilities for customers and businesses in Africa by enabling its customers to build customisable payment applications through its APIs.
“We are excited to partner with Flutterwave as they continue building a world-class payments platform. We were impressed by Flutterwave’s focus on customer success and believe the company is well-positioned for sustainable long-term growth,” said Scott Shleifer, Partner at Tiger Global Management LLC.
Flutterwave’s Series C fundraise comes on the back of an impressive run of 4 years in which Flutterwave reached over 290,000 merchants and over 500,000 registered Barter users, launched a range of new products and partnerships and expanded its infrastructure into over 33 countries.
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