- Flutterwave secured the largest fund by a tech startup in Africa for new market
- Avenir Growth, other new and existing investors contributed to the $170 million Flutterwave raised
- Flutterwave becomes a unicorn, joins Jumia Group, Cell C and Promasidor Holdings
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Flutterwave, a Nigerian payment startup, has raised funds from several investors, including Avenir Growth Capital. Flutterwave secured $170 million, which is expected to change the payment company's status in the African tech market.
The $170 million, raised in a series C funding round, makes Flutterwave liquid enough to enter new markets as the startup currently services 11 African countries in a continent with 54 countries.
While the capital is rated as the highest fund raised by an Africa tech company, this is not the first time the payment startup will secure funding for the company's operation. Flutterwave had raised funds more than twice to remain competitive in the payment market.
In 2017, a Series A funding round worth $10 million was secured a year after Flutterwave was established by Iyinoluwa Aboyeji, Olugbenga Agboola, ex-bankers, entrepreneurs and engineers.
The company also took part in another funding round in January 2020, raising $35 million Series B capital to deepen its reach in the African payment system where it offers API to banks and merchants seeking an alternative to multiple payment integrations.
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While Flutterwave is a Nigerian-owned company, the startup has used previous fundraising to also power operations in Ghana, Kenya, and South Africa, processing 100 million transactions last year, which Disrupt Africa valued at $5.4 billion.
Now, the payment platform has secured another funding, with the $170 million expected to go into expansion of operation in new market. In a statement released to announce the fundraising, Flutterwave said:
"We are thrilled to share news of our $170 million #SeriesC funding which will be crucial in improving our technology, product, customer support, and expansion drive."
The recent fundraising round was led by Avenir Growth Capital and Tiger Global. Part of the funding also came from new and existing investors such as DST Global, Early Capital Berrywood, Green Visor Capital, Greycroft Capital, Insight Ventures, Salesforce Ventures, Tiger Management, and WorldpayFIS 9yards Capital.
Also, the $170 million changes the status of Flutterwave to unicorn. The status is issued to companies that have a market valuation of $1 billion and above. In Africa, according to CBInsight, there are only three unicorns, which are Jumia Group, Cell C and Promasidor Holdings, and Flutterwave is now the latest member.
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Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investments analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.