Moniepoint Inc, a Nigerian and US based fintech specialized in offering banking services to businesses, is set to acquire 100% of the shares of Kopo Kopo Inc, a Kenyan fintech firm known for providing digital financial services, including unsecured short-term loans, to small and medium-sized enterprises (SMEs) in Kenya.

The value of the transaction has not been disclosed but it has received the green light from The Competition Authority of Kenya, which conducted a thorough analysis of the merger’s potential impacts. The authority said that it determined two key points: firstly, the consolidation is not expected to have any adverse effects on competition within the digital credit market, and secondly, there are no anticipated negative implications for public interest arising from the transaction.

In a statement to The Statesman BusinessWeek, Tosin Eniolorunda, Group CEO, Moniepoint Inc., said

“We have a publicly stated interest in Kenya as part of our mission to provide financial happiness for people across Africa. We are delighted to have taken the first step by securing regulatory approval for our plans to provide financial happiness to Kenyans and look forward to progressing the transaction. A further update will be given when appropriate.”

The Competition Authority of Kenya also highlighted that transactions involving merging parties with a combined turnover or assets exceeding Ksh. 1 Billion are required to seek approval from the authority before proceeding with such transactions. The Moniepoint-Kopo Kopo merger met this threshold, prompting a mandatory notification to the authority for further analysis, as per the Competition (General) Rules of 2019.

Moniepoint, formerly known as TeamApt, boasts an eight-year history in the Nigerian payments industry. Beyond payment processing, Moniepoint offers essential financial services to SMEs, including working capital loans and accounting solutions.

Moniepoint has raised approximately less than $100 Million, with its most recent funding round in August 2022 securing $50 Million led by QED Investors, a US Based venture capital firm focusing in fintech investments.