Flutterwave has delayed its much-anticipated initial public offering (IPO) as the company’s Chief Executive Officer Olugbenga Agboola said the payments giant will only proceed with a listing when it turns profitable.
“For a company operating in Africa, that’s a no-brainer; profitability is very important,” Agboola said in an interview. “Right now, the focus is: ‘how do we build a profitable, resilient and scalable business’,” he said, while declining to provide a timeline.
The Lagos and San Francisco-based fintech had initially announced plans to go public on Nasdaq in 2022 but postponed the process following allegations of financial impropriety and workplace misconduct. The company has denied financial misconduct allegations and Agboola has previously described the harassment claims as “very, very isolated.”
The delay is also tied to Flutterwave’s broader strategy of ensuring it delivers “long-term sustainable value” to stakeholders. “The timing of the IPO is not just about paper readiness; it’s also about ensuring that we’re delivering long-term sustainable value to our stakeholders,” Agboola said.
Since its founding in 2016, Flutterwave has expanded its footprint to 35 African countries and processed over 630 million transactions valued at $31 billion.
The fintech unicorn saw its valuation triple to $3 billion in a January 2022 funding round backed by investors including Tiger Global Management.
In addition to its enterprise payments business, Flutterwave has expanded into the remittances sector by acquiring more than 30 new licenses in the United States to facilitate cross-border transactions.
The company now offers remittance services in the UK, all 50 US states and every European Union nation.
While remittances remain a growing segment, enterprise payments continue to drive Flutterwave’s core revenue. The company has seen a 50% revenue increase in the first half of 2024, buoyed by market reforms in Nigeria, its largest market.
Since taking office in May 2023, President Bola Tinubu has free-floated the naira and introduced policies aimed at attracting foreign investments, including from the 20 million Nigerians living abroad.
These reforms have contributed to a surge in cross-border payments and strengthened Flutterwave’s position as a leading player in Africa’s digital payments ecosystem.
Despite the postponement of its IPO, the fintech remains focused on expansion and scaling.
“We are still investing as a company,” Agboola said. “Our goal is obviously to keep on scaling the business.”
The company’s ability to navigate regulatory challenges, scale sustainably and achieve profitability will determine when it ultimately revisits its Nasdaq listing ambitions.
Until then, Flutterwave continues to solidify its standing as Africa’s most valuable payments startup.
