Flutterwave raises $170 million at a $1 billion valuation
Flutterwave, an African fintech startup, has raised $170 million in its Series C funding round. Subsequently, the company now has a valuation of over $1 billion.
Flutterwave’s Series C funding round
Flutterwave, which is one of the African startups in the fintech industry, has raised $170 million in its Series C funding round. This comes a year after its Series B round yielded $35 million. The company’s initial funding was in 2018 when it obtained $20 million from investors.
In total, the startup has secured $225 million from investors. This places it among the few startups in Africa that have raised funds exceeding $200 million. The company plans to use the secured funds to expand into a global payments firm. This includes enhancing customer acquisition, introducing new products, and improving the existing ones.
With the recent funding, the company has now crossed the $1 billion valuation mark. Avenir Growth Capital, a private investment company based in the New York, and Tiger Global, a US-based hedge fund, were the leading investors in this round. Other participants include Green Visor Capital, Tiger Management, and DST Global among others.
Flutterwave began its operations in 2016 is founded in the United States and Nigeria. Its model involves using its APIs to avail tailormade payment applications to businesses within different sectors. Besides, the firm facilitates international companies to expand its dealings into the African continent. This service has seen it work with renowned brands like Uber and Facebook.
In addition, over 290,000 commercial entities use the platform to complete payments. The clients can make the transactions through various mobile wallets, local or international cards, bank transfers, or Barter by Flutterwave. These payment modes are applicable with about 150 currencies.
Payments industry in light of the COVID-19 pandemic
Like most other firms in the payments industry, the coronavirus pandemic turned out to be a disguised blessing for Flutterwave. PayPal is one of the payments companies that had its best year in the midst of the pandemic.
According to Flutterwave’s CEO, Olugbenga Agboola, the firm’s revenue increased by over 100% in 2020. It helped that the Series B funding round happened at the nick of time. Introduction of the Flutterwave Store to serve merchants during the lockdowns also helped in the company’s growth.
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