Airtel Africa considers $4bn IPO for its mobile money unit
TLDR
- Airtel Africa considers IPO for its mobile money unit, potentially valued at over $4 billion.
- Previous investments from TPG and Mastercard valued Airtel's fintech arm at $2.65 billion, hinting at IPO.
- Mastercard's stake in MTN's mobile money arm after Airtel Money investments shows growing trend in African mobile money sector.
Airtel Africa is reportedly considering an initial public offering (IPO) for its mobile money unit, with a potential valuation exceeding $4 billion, as per a recent Bloomberg report. While discussions about the IPO are still in the early stages, Airtel may ultimately decide against proceeding with the public offering.
This move aligns with Airtel's previous hints at a potential IPO for its fintech arm, following significant investments from TPG and Mastercard in 2021, which valued the unit at $2.65 billion.
The prospective IPO reflects a broader trend of investment in African mobile money providers, with Mastercard acquiring a stake in MTN's mobile money arm two years after its investment in Airtel Money.
Key Takeaways
Airtel Money stands out as Airtel Africa's fastest-growing segment, experiencing a notable 31.8% revenue growth in the face of Airtel's overall profit decline of nearly 99% in 2023, primarily due to currency devaluation issues. Despite this setback, Airtel Money continues to expand its footprint, operating in 14 African countries. In Nigeria, it competes with MTN Momo, while facing stiff competition from Kenya's mobile money behemoth, M-Pesa. Notably, Airtel Money received approval last year to increase transaction limits, allowing customers to transact up to KES 500,000 ($3,400), up from the previous limit of KES 300,000 ($2,085), enhancing its competitiveness in the market.
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