Africa’s leading payments firm, Flutterwave, has reiterated that its much-anticipated initial public offering (IPO) will only happen when the company becomes profitable.
An Initial Public Offering (IPO) is when a private company offers shares to the public for the first time to raise capital.
In a report by Bloomberg, the company’s co-founder and Chief Executive Officer, Olugbenga Agboola, made this clear in a recent interview, emphasizing that profitability remains its top priority.
“For a company operating in Africa, that’s a no-brainer; profitability is very important,” Agboola stated.
“Right now, the focus is: ‘how do we build a profitable, resilient and scalable business’,” he added, declining to provide a specific timeline for the IPO.
He further noted that the timing of the public listing is not just about regulatory preparedness but also about ensuring that “we’re delivering long-term sustainable value to our stakeholders.”
Backstory
Flutterwave initially disclosed plans to list on the Nasdaq stock exchange in 2022. However, the company deferred the move to address concerns over financial impropriety and workplace harassment allegations, as well as to fill critical executive positions after notable departures.
- The company has refuted claims of financial misconduct. Agboola previously described the harassment allegations as “very, very isolated.”
- Despite postponing its IPO, Flutterwave has significantly expanded its market presence. Since its launch in 2016, the company has extended its services to 35 African countries and processed more than 630 million transactions worth $31 billion.
- In January 2022, a funding round tripled the company’s valuation to $3 billion. Furthermore, Flutterwave secured over 30 new licenses in the United States last year to bolster its remittance business.
Agboola stated that Flutterwave now provides remittance services to Africa from the UK, all 50 US states, and every EU nation
“It now offers services to remit funds to Africa in the UK, more than 50 US states and every European Union nation,” he noted.
Nigerian economic reforms
Since assuming office in May 2023, President Bola Tinubu has implemented financial reforms, including floating the naira and incentivizing investments from the approximately 20 million Nigerians in the diaspora.
- While enterprise payments remain Flutterwave’s core business, the company is witnessing significant growth in remittances, driven by Nigeria’s recent economic policies.
“Remittances are growing really fast. We are still investing as a company. Our goal is obviously to keep on scaling the business,” Agboola said.
- Flutterwave has reported a sharp increase in revenue, driven by its expansion initiatives. Agboola disclosed that revenue jumped by around 50% in the first half of 2024 compared to the previous year.
