In recent corporate filings, it has been revealed that the valuation of OPay, the Nigerian fintech startup, has experienced remarkable growth. Backed by investors such as Sequoia Capital and Softbank, OPay’s journey reflects the rapid expansion of digital payments in Nigeria.
Origins and Early Investment
- In 2018, Opera, a web browser company, acquired Paycom, a Nigerian mobile money operator.
- Paycom was rebranded as OPay, and Opera became a stakeholder in the company.
- However, Opera’s stake gradually decreased over time, reaching 6.4% by 2021.
Currency Redesign and Fintech Adoption
- OPay’s recent success can be attributed, in part, to an ill-timed currency redesign that caused cash scarcity.
- During this period, people turned to fintech apps like Moniepoint and OPay for transactions.
- National payment volumes surged, reaching record levels in early 2023.
Financial Performance
- OPay significantly expanded its user base throughout 2023, experiencing a quadruple growth.
- The company’s revenue also soared, increasing by over 60% on a constant currency basis.
Strategic Transaction and Valuation
- In early 2023, Opera sold its Asian fintech subsidiary, Nanobank, to OPay.
- As part of the deal, Opera received equity in OPay, increasing its stake to 9.4%.
- According to filings with the US Securities and Exchange Commission (SEC), Opera’s stake is now valued at $253 million.
- This implies that OPay’s overall valuation stands at an impressive $2.7 billion, up from its previous funding round valuation of $2 billion.
The surge in OPay’s valuation underscores the transformative impact of digital payments in Nigeria, positioning the company as a key player in the evolving financial technology landscape.
Source: Techcabal