Nigerian digital lender, PayHippo, is set to acquire Maritime Microfinance Bank subject to approval by the Central Bank of Nigeria.
If approved, PayHippo will gain deposit-taking status and the opportunity to tap Maritime’s customer base and workforce to offer more products.
Founded in 2014, Maritime’s offerings include micro and SME loans, savings products, demand deposits, and investments. Its customer base includes freelancers, solopreneurs, side hustlers as well as SMEs in the maritime industry.
“This acquisition will enable MFB to expand its product and services in line with PayHippo’s goal to reach a wider range of SMEs from different sectors by providing access to quick and seamless financing,” the companies said in a statement.
PayHippo will get access to Nigeria’s Inter-bank Settlement System (NIBSS) and its merchants will be able to accept deposits, send, and receive money from commercial banks within the country.
Founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, PayHippo has lent credit to over 25,000 small and medium enterprises and earns $4 million in revenue annually. The YC-backed company has also raised $4.1 million in VC funding since launching.
“We are making this investment to enhance products and services for our customers and in turn enable us to reach a wider customer base. We are very excited to work with Maritime Microfinance Bank to revolutionize the SME financial service through digital innovation,” Bijesse said
Once the deal is done, Maritime will adopt PayHippo’s corporate brand, while PayHippo will extend its digital services to existing Maritime customers.
“Nigeria has an ever-growing need for SME lending solutions to help businesses meet their financial needs. We believe PayHippo is well-positioned to develop new and customized financial products for SMEs in the country,” said Maritime Microfinance Bank’s Chairman, Adetola Atekoja.
PayHippo has been fairly successful in its lending service over the years. While the size of loans lent by PayHippo has grown 75x from March 2020 – February 2022, the repayment rate was 97% (similar to all time average).
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