Nigerian digital bank that offers loans to customers, Fairmoney, is currently in talks to acquire one of the fastest-growing neobanks in Africa, Umba, in a $20 Million All-stock deal.
Sources familiar with the deal disclose that acquisition negotiations are still ongoing, however, neither Fairmoney nor Umba has given any detail about the deal.
The move signals FairMoney’s interest in growing its customer base by expanding into more countries. Also, the acquisition will enable FairMoney to expand on Umba’s existing infrastructure.
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FairMoney, best known for its lending services in Nigeria, has been looking for more avenues for expansion. Launched as a digital lender in Nigeria six years ago, the startup has also been expanding its product.
Since then, it has added other financial services, such as debit cards, transfers, and payments, with over six million retail customers. FairMoney offers a range of digital financial products including, near-instant digital loans 24/7, investment products, savings, payments, and cards directly via its mobile app.
According to the company, it disclosed that the app is the number 1 most downloaded fintech app in Nigeria. With over 10,000 daily loan disbursements, and over 5 million users enjoying banking, savings, and investment services, FairMoney helps the average Nigerian access finance tools to take control of both their life and their finances.
FairMoney is building the leading mobile bank for emerging markets, bringing financial inclusion to the underbanked people. The startup goal is to rebuild Africa’s money story by offering Tier 1 digital financial services to merchants and consumers alike.
The startup is backed by international investors and has raised a total of $89.9M in funding, to support our development.
On the other hand, Umba is reported to be one of the fastest-growing neobanks in Africa which offers free bank accounts and a suite of financial services including small loans to their customers all from a mobile app.
The digital bank, which was founded by Tiernan Kennedy and former Munster rugby player Barry O’Mahony, offers a transparent and accessible digital financial service alternative to legacy African banks. Customers can spend, pay bills, get loans, and earn cashback all from their phones.
In 2020 as Umba’s growth accelerated during the global pandemic, they needed an identity verification solution that could scale rapidly while preventing fraud. With the goal to build a premier pan-African neobank, they needed to be a step ahead on compliance and work closely with regulators which saw the company partner with SmileID.
Umba provides an ecosystem of connected financial services that allows the customer complete control of their finances all in one App. The startup believes in the power of financial inclusion to drive economic growth.
As a leading digital bank, Umba is committed to providing innovative solutions that empower both employers and employees to achieve financial stability and reach their full potential.
The digital platform offers seamless access to a wide range of banking services, including account management, payments, loans, savings, and more. Umba leverages technology and data-driven insights to streamline processes and make banking faster, smarter, and more convenient than ever before.
With its extensive network and expertise, the startup is well-positioned to support our customers at every stage of their journey.