
Stanbic IBTC Holdings Plc, a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, and asset management, amongst others, has announced plans to recapitalize its fintech subsidiary, Zest Payments, with N4 billion investment.
The Chief Financial Officer of the Stanbic IBTC Group, Kunle Adedeji, disclosed during the bank’s recent investor presentation that a total of N5 billion will be allocated to recapitalize two of its subsidiaries, “Around 3.6% of N148.71 billion, which is five billion naira, will be used to recapitalize two subsidiaries,” Adedeji explained. “Zest Payments will receive about four billion, while one billion will be allocated to our venture business.”
This move is set to bolster Zest Payments and strengthen its position in Nigeria’s competitive Fintech space. Zest, a relatively new player in the fintech space, has since been unable to record significant profit.
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In 2023, the fintech subsidiary recorded a loss of N1.2 billion. It reported an after-tax loss of N436 million in the first quarter of Q1 of 2024, up from a loss of N150 million in the same period of 2023. Despite increasing its income to N93 million in the first nine months of 2024, the payments startup widened its losses to N1.89 billion. The full-year report for 2024 is unreleased at the time of filing this report.
Launched in May 2023, Zest is a cutting-edge fintech platform committed to revolutionizing the way businesses and individuals manage payments. With a focus on speed, security, and simplicity, Zest empowers customers to transact with confidence in today’s fast-paced digital world.
During the launch event, the Group Chairman of Stanbic Holdings, Basil Omiyi, speaking on the company’s vision said,
“We aspire to become the leading end-to-end financial services provider for businesses and individuals in our country and region”.
Omiyi stressed the strategic focus on fintech, emphasizing the need for a solution-driven orchestrator platform.
In his words,
“As you may know, we have subsidiaries dedicated to this mission, including banking, pensions, insurance, and asset management. Within our group, we have well-defined divisions. We recognized the need for a fintech platform. This platform could catalyze the next wave of growth in the financial services sector, benefiting businesses, consumers, and technology enthusiasts alike. We understood the potential of fintech in revolutionizing our society’s financial services. Thus, we decided that our finTech initiative should be a solution-driven orchestrator platform.”
Zest provides tailored payment solutions to meet the needs of modern businesses and consumers. This includes the following;
- Instant Payments: Users can Send and receive payments in real-time, anytime, anywhere.
- Multi-Channel Integration: The platform accepts payments online, in-app, and aid at physical locations through its versatile gateway solutions.
- Secure Transactions: The platform prioritizes the safety of users transactions with state-of-the-art encryption and fraud detection systems.
- Scalable Solutions: Designed to grow customers business, Zest Payment adapts to their needs with flexible APIs and a robust infrastructure.
The recent investment by Stanbic IBTC holdings, signals confidence in Zest’s potential. This could could play a transformative role in strengthening its position in the fintech space.
Here’s how this investment could help Zest:
Scaling Operations:
The injection of funds would enable Zest to scale its infrastructure, ensuring seamless payment experiences for businesses and consumers. This includes building the capacity to handle higher transaction volumes and supporting complex integrations with partners.
Advancing Technology:
A significant part of the funding could be allocated to developing cutting-edge technologies such as artificial intelligence, machine learning, and blockchain to enhance payment security, fraud prevention, and personalization. This would help Zest compete with other innovative fintech platforms in the country.
In summary, the N4 billion investment would empower Zest to innovate, scale, and establish itself as a competitive force in Nigeria’s dynamic fintech landscape, contributing to Stanbic IBTC’s broader growth strategy.