Moniepoint, a Nigerian enterprise financial institution, and PayDay, a neobank, have denied stories of a deliberate acquisition. This comes after WeeTracker, an African tech publication, reported that Moniepoint is about to amass PayDay for $40 million after main its $3 million seed spherical. Moniepoint is a enterprise financial institution that has the most important company banking community in Nigeria and processed a whole annualised cost worth of $170 billion final yr. PayDay is a neobank that connects Africans with the world at giant with digital greenback playing cards and different related choices.
According to WeeTracker, Moniepoint and PayDay are in talks that can see Moniepoint purchase the neobank in about three months. The publication additionally claimed that the acquisition quantity will assume a valuation of $40 million for the neobank. But some traders near the deal have denied the stories, clarifying that Moniepoint solely invested within the neobank. Moniepoint additionally shared feedback with TechCabal by way of electronic mail, stating that their funding in PayDay represented a “strategic investment” and not an acquisition. This was additionally echoed by PayDay representatives.
Despite these denials, two different sources say that a deal is on the desk and will seemingly still go forward in three months. They claimed that an settlement in precept has been reached and that it’ll not be a shock if the deal goes via because the acquisition supposedly is sensible for Moniepoint. According to TechCrunch, PayDay had earlier turned down a $15 million acquisition provide from an African unicorn.
While the Moniepoint acquisition allegations have been denied, it does make sense that Moniepoint would purchase PayDay. The neobank presently processes a median of 40,000 transactions every day and over $25 million month-to-month, numbers that make it a strong possibility for Africans seeking to obtain cash from overseas.
The buyer base of PayDay and the quantity of transactions it presently claims to course of point out that it has cornered a vital market share within the remittance market. With Moniepoint on observe to realize unicorn standing, an acquisition of a promising startup like PayDay may assist speed up its journey towards attaining unicorn standing.
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