SoftBank Makes First Africa Bet on OPay at $2 Billion Valuation

SoftBank Vision Fund 2 led a $400 million funding round for Chinese-backed and Africa-focused fintech company Opay, valuing the Nigerian mobile-payment platform at $2 billion and marking the investment vehicle’s first bet in Africa.  

The round drew participation from existing investors like Sequoia Capital China, Redpoint China, Source Code Capital, DragonBall China, 3W Capital and Softbank Ventures Asia according to Opay.

This news comes in three months after the information reported that the company was in talks to raise “up to $400 million at a $1.5 billion evaluation” from a group of Chinese investors.

According to  Bloomberg, Opay Chief Executive Officer Yahui Zhou said “We want to be the power that helps emerging markets reach a faster economic development”, in an emailed statement.

The company founded in 2018, had an exclusive presence and provided various digital services from mobility and logistics to e-commerce and fintech at cheap rates for consumers. The company’s monthly transaction volumes exceed $3 billion.

Opay previously counted ride-hailing and logistic services as part of its offerings. Right now, the company’s mobile money arm excels the most. Opay also claims to process about 80% of bank transfers among mobile money operators in Nigeria and 20% of the country’s non-merchant sales transactions.

According to reports, last year the company also said it acquired an international money transfer license with a WorldRemit partnership in the works.