ADVERTISEMENT

Kenyan Fintech Cellulant Eyes More Funding, Weighs Deals

Kenyan Fintech Cellulant Eyes More Funding, Weighs Deals

Cellulant Ltd., a Kenyan financial-technology provider, is planning its fourth round of fundraising targeting to become a so-called unicorn in three years. 

The Nairobi-based company is considering raising as much as $150 million by the first quarter of 2022, Chief Executive Officer Akshay Grover said in an interview. The funds will be used to deepen its presence in 35 African markets and make acquisitions, according to Grover. The company has so far raised $60 million from investors including TPG Holdings LP and Velocity Capital, he said.

Fintech companies such as Cellulant, Chipper Cash and Flutterwave Inc. are witnessing a surge in demand for their services in a continent that’s home to a tech-savvy and young population, but where financial infrastructure is extremely weak. Cellulant says it helps conduct $1 billion of transactions every month.

“What we want to build here is the most all-pervasive payments business across Africa,” Grover said. “We want to build out a team that captures a lot of the international merchants, which could be in the U.S. and Europe and Asia-Pacific but with business linkages into Africa.”

Cellulant plans to set up two more technology hubs in Nigeria, and possibly Egypt in addition to the one in Kenya that employs 130 people. The company’s clients include Emirates and Jumia Group, Grover said. 

The startup aims to become a unicorn -- companies privately valued at $1 billion and above -- in about three years.

“The billion dollar will happen. Who knows -- maybe $5 billion will happen,” Grover said. 

African companies have raised a record $2.5 billion this year on the back of demand for everything from financial services to fresh produce distribution, according to Briter Bridges Intelligence.

©2021 Bloomberg L.P.