African fintech leader, Flutterwave, has acquired Nigerian open banking startup Mono in a significant all-stock deal valued between $25 million and $40 million. This acquisition merges two prominent fintech infrastructure companies in Africa. Flutterwave, known for operating an extensive payments network across the continent, has joined forces with Mono, often likened to the ‘Plaid for Africa,’ which has developed APIs enabling businesses to access bank data, facilitate payments, and verify customers.
Mono, founded in 2020, functions similarly to Plaid by utilizing APIs that allow users to authorize the sharing of their bank information, empowering financial institutions to analyze income, spending habits, and creditworthiness. This addresses the challenge of inconsistent access to bank data in African markets, where credit bureaus are limited, and fintechs heavily rely on bank transaction histories for credit assessments.
With Mono’s infrastructure supporting nearly all digital lenders in Nigeria and facilitating over 8 million bank account linkages, this acquisition strengthens Flutterwave’s position in the African fintech landscape. The deal not only enhances Flutterwave’s vertical integration by offering onboarding and identity verification services but also expands its capabilities in the region.
Source: TechCrunch
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