Moniepoints Road to Unicorn Status

This is a typical example of how starting small, focusing on real problems, and staying dedicated to a mission can create extraordinary results.

In 2015, Tosin Eniolorunda and his team started Moniepoint (then called TeamApt) to help everyday Nigerians, especially small traders, access financial services. These traders were making money but couldn’t use traditional banks due to the lack of credit history. Moniepoint began by giving them small loans, using their communities to determine trustworthiness instead of relying on formal records.

The team built and refined their products without seeking external funding for three years. In 2019, they raised $5.5 million in their first funding round, which allowed them to expand rapidly. They rebranded to Moniepoint Inc. and moved their headquarters to London, aiming to bring solutions to more people beyond Africa.

This Nigerian financial technology company has transcended its humble beginnings to become one of Africa’s most celebrated unicorns, achieving a valuation of $1 billion. Its journey is a masterclass in leveraging technology, understanding customer needs, and creating solutions for financial inclusion.

Simplicity Meets Scalability

The company generates revenue through three core streams, each designed to meet the unique needs of its users.

First, Moniepoint enables businesses to accept payments seamlessly via mobile money, bank transfers, and cards. Its platform also provides value-added tools like customer relationship management and analytics, helping businesses to optimize their operations.

The company offers tailored financial services for small and medium-sized enterprises (SMEs), including savings accounts, loans, and microinsurance. These solutions provide critical support to businesses often excluded from traditional banking.
Moniepoint also earns through transaction-based fees for services such as withdrawals, bill payments, and transfers.

The Rise to a Unicorn

Moniepoint’s journey to becoming a billion-dollar company was marked by key moments of growth and innovation. Its success began with strategic funding from investors like Visa and Tiger Global. These funds helped the company expand its operations, improve technology, and reach new markets. The recent $110 million fundraising round, led by DPI, propelled Moniepoint to unicorn status with a valuation of over $1 billion. Other investors include Google’s Africa Investment Fund and QED Investors, supporting Moniepoint's further expansion across Africa.

The company’s strength lies in its ability to adapt and create solutions for diverse customer needs. Moniepoint introduced innovative services, including payment processing, lending, and tools for managing inventory. It also provided savings accounts and insurance products to support small businesses.

Moniepoint’s growth was fueled by strong partnerships with banks and telecommunications companies, which helped expand its services. The company also acquired businesses that added new capabilities to its portfolio like the Nigerian fintech, Kudi (2020), known for its payment processing and financial services for businesses. This acquisition transformed Kudi into Moniepoint, creating a seamless platform for small and medium enterprises to manage their finances.
And in 2023, Sidicoin, a blockchain-based remittance startup enhanced Moniepoint’s cross-border payment capabilities.

Big Money, Big Problems?

You would guess that there may be little or no hurdles with the investment backing. The company has made remarkable progress but it faced serious challenges that tested its resilience and adaptability, and perhaps is still facing these roadblocks.

One major hurdle is navigating regulations. Operating in Nigeria and other African countries means dealing with strict rules that can slow innovation. Each country has its legal framework, making expansion and compliance a tough balancing act.

Another concern is cybersecurity threats. Moniepoint must protect sensitive customer information from cyberattacks as a fully digital company. Maintaining strong security systems is critical to winning and keeping customer trust.

How about the intense competition and the constant pressure that it brings? Africa's fintech industry is growing quickly, with many established companies and newer startups offering similar services. Moniepoint has to innovate to stay ahead and retain its market share continuously.

Industry-wide Opportunities For The Future

For Moniepoint, this journey is just beginning, with exciting opportunities ahead to expand its impact on Africa’s financial sector.

Millions of Africans, especially in rural areas, still lack access to financial services. Hence, Moniepoint will need to continue creating solutions that work for these communities to deepen its presence and drive financial inclusion.

The company can also embrace new technologies like artificial intelligence and machine learning. These tools will help make operations more efficient, enhance customer experiences, and improve fraud prevention systems.

Adding services like investment tools and international remittances would cater to evolving customer needs and create new revenue streams. More collaborations can also support cross-border services and help Moniepoint scale its operations.

Moniepoint's journey reflects innovation and a clear vision to transform Africa’s financial landscape. It has addressed key challenges, built robust solutions, and captured untapped markets, solidifying its position as a fintech leader. With the company's new Unicorn status, we anticipate greater financial inclusion and economic growth across the continent.