The Competition Authority of Kenya (CAK) has approved a move by Moniepoint, a Nigerian fintech company, to acquire a 100% stake in Kopo Kopo, a fintech startup based in Kenya.
In a statement, the regulator noted that the takeover was within the set regulations.
“This approval has been granted based on the two key considerations during the merger analysis that; first, the transaction is unlikely to negatively impact competition in the market for digital credit; and second, the transaction will not elicit negative public interest concerns,” the statement read in part.
The value of the acquisition, should be at least $7 million since the competition regulations in Kenya require any transaction surpassing the $7 million mark to seek approval from the CAK.
Having secured the approval to acquire Kopo Kopo, Moniepoint will now proceed with the previously plans of expanding its operations to the East African region.
Kopo Kopo Legacy
The firm which started in 2012, has over the years earned recognition for its efforts in promoting financial inclusion among SMEs and advocating for the acceptance of digital payments.
One of its prominent milestones was in 2012 when it partnered with Kenya’s leading mobile money service provider, M-Pesa to introduce the now-popular ‘Lipa Na M-Pesa’ which allows users to complete mobile transactions with or without access to the internet.
Kopo Kopo has attracted investors in its early stages from companies including Khosla Impact, Bamboo Finance, and Accion Venture Lab, with its last raised funds being a $2.1 million Series B find.
On its part, Moniepoint- formerly known as TeamApt has established itself as a prominent player in Nigeria’s banking sector with a legacy spanning eight years as a provider of mobile payment solutions processing up to $170 billion in annual run-rate.
Recently, Moniepoint announced plans to enter the consumer banking market with an application and debit card allowing users to pay bills and buy airtime as part of the company’s growing range of services.