MTN Group Ltd. is actively pursuing a new round of investments in its fintech business which experienced a significant surge in transaction volumes by a third in 2023, a Bloomberg report says.
According to the report, MTN’s mobile-money transactions were up 32.2% for the year [2023].
“We are looking at a second round of minority investment into the fintech business. We are open to sell up to 30% of the business at the right valuation,” Chief Executive Officer, Ralph Mupita, told reporters on a call.
This initiative nonetheless comes amidst challenges as Africa’s largest mobile carrier reported its most significant profit decline in at least 30 years, primarily due to the devaluation of the Nigerian Naira.
Currently, the company boasts 72.5 million active users of its mobile-money services, known as MoMo. MTN Group Ltd. recently finalized a deal with MasterCard Inc., which values the fintech business at $5.2 billion.
FINTECH AFRICA | MasterCard Acquires $200 Million Stake in MTN Fintech Business at $5.2 Billion Valuation
In 2022, as reported by BitKE, there was much conversation about the biggest fintech service on the continent, sparked by MTN announcing that its MTN mobile money unit had… pic.twitter.com/bKnMXesKba
— BitKE (@BitcoinKE) February 10, 2024
Ralph Mupita, the CEO, highlighted in a Bloomberg TV interview that the partnership with MasterCard will enhance the payments aspect of the business. Furthermore, Mupita indicated that MTN has ‘ambitions’ in the realm of remittances.
