Flutterwave says Mono acquisition could bolster IPO case

Flutterwave bought Nigerian open-banking startup Mono to access financial-data infrastructure and improve identity verification, its CEO said. He added the deal is intended to boost earnings, lower certain transaction costs and strengthen the company's case for a possible IPO.

Flutterwave has acquired Mono, an open-banking platform it has worked with since 2021, and its CEO said the purchase is meant to improve profitability and infrastructure ahead of any future public listing. The company did not disclose the terms or price of the deal. Flutterwave has previously announced and then paused IPO plans while it focused on building a sustainable, profitable business. The CEO declined to provide a timeline for any listing. Known details: - Flutterwave purchased Mono Technologies Nigeria Ltd., which it had used since 2021 for account-to-account payments and financial-data access. - The company did not disclose the cost or terms of the acquisition. - CEO Olugbenga Agboola said the acquisition is intended to improve profitability, resilience and infrastructure. - The deal is expected, according to the CEO, to lower costs on certain account-to-account payment processes and expand the profit margin on those processes to at least 10%. - Flutterwave operates across roughly 35 African countries, processes about 500,000 payments daily, and saw a January 2022 funding round that raised its valuation to $3 billion. - Flutterwave first announced Nasdaq listing plans in 2022 but delayed and later halted them to prioritize building a profitable, sustainable business; the company has denied prior accusations of financial misconduct. Summary: The company describes the Mono acquisition as a step to deepen its payment infrastructure, reduce specific transaction costs and strengthen earnings ahead of any potential public offering. Company leaders say profitability and resilience are the priorities but did not provide a timeline for an IPO. Undetermined at this time.