Moniepoint Aquires Shares Of Kopo Kopo

The Competition Authority of Kenya has given its green light to Moniepoint’s proposal to acquire 100% worth of shares of Kenyan fintech startup, Kopo Kopo. This is in line with Moniepoint’s expansion strategy during its rebranding from TeamApt. The Nigerian fintech company, co-founded by Tosin Eniolorunda and Felix Ike, has been making strides in the financial services sector to expand into East Africa and North Africa, which will be dependent on where it has identified large markets where millions of businesses are underserved.

In an interview, the CEO Tosin Eniolorunda and co-founder Felix told The African Report of its ambitions to expand into Kenya and Tanzania. Afterward, the Competition Authority of Kenya officially approved Moniepoint’s acquisition of KopoKopo. This significant step underscores its commitment to broadening its footprint beyond Nigerian borders.

“We have a publicly stated interest in Kenya as part of our mission to provide financial happiness for people across Africa and are delighted to have reached the milestone of securing regulatory approval for our plans,” says Eniolorunda.

CAK said, “This approval has been granted based on the two key considerations during the merger analysis; first, the transaction is unlikely to negatively impact competition in the market for digital credit; and second, the transaction will not elicit negative public interest concerns.”

Kopo Kopo, founded in 2010 by Ben Lyon and Dylan Higgins, has garnered notable attention within the fintech space, having secured $5.4 million in funding from prominent investors like Accion Venture Lab, Havelin Venture Partners, First Light Ventures, and Khosla Impact. The startup’s offerings align with Moniepoint’s services in their respective regions, encompassing credit solutions, business management tools, and various banking services such as savings and investments.

“The market structure, therefore, will not change post-merger since the acquirer is not involved in the same business activity in Kenya, as the target,” said the Kenyan competition regulator.

Beyond digital credit, Kopo Kopo enables small merchants to accept mobile money payments, tapping into Kenya’s mature market dominated by Safaricom’s M-Pesa. In Nigeria, Moniepoint offers a payment gateway along with business loans, expense cards, accounting tools, and insurance. It aims to expand these services in Kenya.

Moniepoint and Kopo Kopo offer some similar services in their Nigeria and Kenya bases, respectively. For instance, both fintech startups offer credit, business management tools, and banking solutions such as savings and investments.