Nigeria’s fintech Moniepoint has concluded plans to acquire Rwanda-born neobank, PayDay, in the coming months.
According to WeeTracker, this is just as Moniepoint recently led an investment round for the 20-month old Rwanda-born neobank.
The deal which appears to have been concluded even before the oversubscribed $3 million seed round was announced Wednesday. It attracted participation from new and existing local and global investors.
According to a communication sent to investors and advisors, Moniepoint and Payday have agreed on broad terms to complete the transaction and make it official by the end of Q2 2023.
Payday has raised over $5 million since its inception, with Ingressive Capital Fund II, Techstars, HoaQ, and others among its backers looking to exit; a development that boosts Africa’s tech landscape at a time when funding has slowed and talk of returns has surfaced.
The acquisition of Payday by Moniepoint appears to be a positive sign for increased local capital participation in African technology, which has been stepped up in recent years.
Favour Ori, Payday’s Founder/CEO, told TechCrunch that PayDay had previously turned down a USD 15 million acquisition offer from an African unicorn.
However, it’s unclear whether the earlier offer was made by Moniepoint (formerly TeamApt) CEO Tosin Eniolorunda.