Flutterwave Inc., Africa’s largest payments startup, will proceed with its highly anticipated initial public offering (IPO) only after achieving profitability.
The company’s Chief Executive Officer, Olugbenga Agboola disclosed this in an interview with Bloomberg.
Agboola emphasized the importance of profitability for a company operating in Africa, stating, “For a company operating in Africa, that’s a no-brainer; profitability is very important.”
He added that the company’s current focus is on building a “profitable, resilient, and scalable business,” though he declined to provide a specific timeline for the IPO.
Delivering value
Agboola explained that the timing of the IPO is not just about being “paper-ready” but also about ensuring that Flutterwave delivers long-term sustainable value to its stakeholders.
- The Lagos and San Francisco-based company initially announced plans for an IPO on the Nasdaq stock exchange in 2022.
- However, the plans were delayed to address allegations of financial impropriety and personnel harassment in some of its offices, as well as to fill key positions following several high-profile departures.
- Flutterwave has denied the allegations of financial misconduct, and Agboola has previously described the harassment claims as “very, very isolated.”
Remittances drive growth amid Nigerian reforms
While enterprise payments remain Flutterwave’s largest business segment, Agboola noted that remittances are “growing really fast,” partly due to reforms in Nigeria, its biggest market.
Since assuming office in May 2023, President Bola Tinubu has implemented policies such as the free float of the naira and efforts to attract investments from the nearly 20 million Nigerian citizens living abroad.
- These reforms have positively impacted Flutterwave’s remittance business.
- Agboola revealed that Flutterwave’s expansion plans have driven a 50% increase in revenue in the first half of 2024 compared to the same period last year.
- The startup counts major companies like Flywire Corp. and Uber Technologies Inc. among its customers.
“We are still investing as a company. Our goal is obviously to keep on scaling the business,” Agboola said.
Since its founding in 2016, Flutterwave has expanded its operations to approximately 35 African countries, processing over 630 million transactions valued at $31 billion.
The company’s valuation tripled to $3 billion following a funding round in January 2022.
Last year, Flutterwave acquired more than 30 new licenses in the United States to expand its remittance business. The company now offers services to remit funds to Africa from the UK, all 50 U.S. states, and every European Union nation.
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