Making the news

Flutterwave Prepares for Initial Public Offering On Nasdaq Stock Exchange

2 Mins read

Nigerian and African-focused Fintech company, Flutterwave is preparing for an initial public offering (IPO) on the Nasdaq stock exchange, even as it deals with regulatory hurdles in its key markets.

Chief financial officer of the company, Oneal Bhambani, disclosed that the company has an attractive market potential, and its listing is an initiative of Flutterwave that is reaching the scale and trajectory comparable to what other investors seem to invest in public markets.

In his words;

“We have an attractive market potential and opportunity to do so now. We are a growth company, and we have a tremendous opportunity to invest and really develop solutions for the largest enterprises in the world that transact in Africa. 

“The listing is an initiative of the payment company that is reaching the scale and trajectory comparable to what other investors seem to invest in the public markets”.

Flutterwave is currently valued at $3 billion, backed by B Capital Group and TPG, and has tapped talent from American Express’s Kabbage unit to bolster corporate governance ahead of the planned IPO.

However, there were recent controversies that trailed the company this year. Recall that earlier this year, Flutterwave was accused of fraud, perjury, and insider trading. The company however denied such allegations, with claims that they were false.

Also, in July 2022, the Kenyan government through its central bank, banned Flutterwave from operating in the country, stating that the company was not licensed to operate as a remittance provider, or as a PSB service provider in the country.

Reacting to this, Flutterwave issued a rebuttal to these claims by denying any wrongdoing of illegal operations in Kenya. The company described such claims as false, stating that they have records for relevant authorities to verify.

However, despite all these allegations and scandals that have rocked the company this year, it remains unperturbed, as the company continues to forge ahead with its recent plans for an initial public offering on the Nasdaq stock exchange.

The company has disclosed its plan to use the proceeds from the listing to grow its expansion into new African opportunities. It is interesting to note that Flutterwave, which specializes in cross-border transactions, is expanding into lending.

Through its Flutterwave capital, it will provide collateral-free digital loans to business owners in Nigeria. With this support, businesses can easily access loans of up to 2 million Naira without collateral, cumbersome documentation, and other stringent terms and conditions.

Through this, business owners can expand, increase inventory, hire more labor, pay bills, run marketing campaigns, and ultimately grow their business revenue.

 

 

Source: Tekedia.com

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