Nigeria’s OPay, the fintech startup that has been making waves in the country’s digital payments landscape, has seen its valuation soar to $2.7 billion.
This represents over 30% since its Series C funding round in 2021.
This surge in valuation shows the exponential growth of Nigeria’s digital payments sector and the increasing prominence of financial technology companies within the nation’s economy.
The valuation update comes from recent corporate filings made by Opera, an early investor in OPay. Opera’s stake in OPay gradually declined over the years to 6.4% by 2021.
However, a strategic move in early 2023 saw Opera increase its stake to 9.4% after selling its Asian fintech subsidiary, Nanobank, to OPay in exchange for equity in the company.
According to filings with the US Securities and Exchange Commission (SEC), Opera valued its 9.4% stake in OPay at $253 million, reflecting the $2.7 billion valuation of the fintech startup.
OPay’s meteoric rise can be attributed to several factors, including Nigeria’s increasing adoption of digital payments and the company’s innovative services.
The surge in digital payments volumes, driven in part by an ill-timed currency redesign that led to cash scarcity, has propelled OPay’s growth.
As more Nigerians turned to fintech apps like OPay for transactions, the company experienced a quadrupling of its user base in 2023, accompanied by a revenue growth of over 60% on a constant currency basis, according to Opera.
Despite its rapid growth, OPay, like other fintech companies, faces challenges related to fraud and customer safety concerns.
Regulatory bodies, including the Central Bank of Nigeria, have tightened rules on account safety, highlighting the need for OPay and similar companies to address these issues while continuing to innovate and expand their services.
As Nigeria’s digital payments ecosystem continues to evolve, OPay’s rising valuation underscores its position as a key player in driving financial inclusion and transforming the country’s economy through innovative technology solutions.