Lagos-based TeamApt To Raise US$1bn, Targets Over 350 Million Africans

In its determination to provide financial access to the over 350 million Africans who are currently financially underserved,Nigerian technology startup TeamApt Limited is in the market raising its third round of funding at a value of more than US$1 billion.

This, market watchers believe will result in the fintech firm joining a spate of Africa-tech companies to become so-called unicorns.

TeamApt is Nigeria’s largest Agency banking operator and is now building the largest digital bank, offering financial services products.

These products are tailored to meet the needs of the underserved mass market – micropayments, savings, lending, insurance, pensions – using technology and low cost offline distribution models.

“We believe providing financial access to the over 350 million Africans who are currently financially underserved will economically empower them and put them on a path to become the next generation of middle class Africans,” the firm printed on its web page.

The Lagos-based company is targeting to raise about $150 million, Blomberg quoted the founder and Chief Executive Officer Tosin Eniolorunda as having said in an e-mailed response to queries. TeamApt is getting interest from venture capital investors from the U.S. and Europe, he added.

“The money will be used for our expansion to Egypt, Ghana and Cameroon,” said Eniolorunda. “And building out our digital banking product targeted at the under-served.”

While Africa has a rapidly growing and tech-savvy youth population, the continent often lacks financial infrastructure such as banks and tellers.

TeamApt is trying to address the gap by using mobile technology and authorized agents to give people banking services such as cash deposits and fund transfers.

Analysts say TeamApt is aiming to join a growing number of African startups valued over $1 billion, including Flutterwave, OPay and Jumia Technologies AG.

Since its founding, over 15 million customers, 100,000 businesses, and top-tier banks depend on TeamApt’s solutions and infrastructure to provide financial inclusion, create unforgettable customer experiences and deliver economic growth for developing markets.

“While exciting, it’s just a milestone for us, as 60per cent of the population in emerging and frontier markets remain unbanked or underserved, so there is still work to be done,” the firm stated.

Meanwhile, the boom in payments firms is a reflection of the rapid take up of smartphones and improving internet speeds across Africa.

Still, telecom companies such as MTN Group Ltd., OPay and Paga are also using agents, or people within communities to explain and sell their products and services, while commercial banks in Nigeria such as Access Bank and FirstBank have also started using agent networks.

TeamApt now processes $3.5 billion in transaction values monthly, with 150,000 agents on its platform, and has 14 million users, Eniolorunda said.