Adedapo Adesanya
By Adedapo Adesanya
Amid its recent spate of scandals, Nigerian and fintech company, Flutterwave, has disclosed that it was preparing for an initial public offering (IPO) on the Nasdaq stock exchange.
This is coming as the African unicorn continues to face regulatory hurdles in its key markets.
The Chief Financial Officer of the organisation, Mr Oneal Bhambani, noted that the company has attractive market potential, adding that the listing shows that it was reaching the scale and trajectory compared to what other investors seem to invest in public markets.
“We have 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,” he said.
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.
In a new development, a Kenyan court has ordered that another Ksh 400.6 million ($3.3 million) belonging to the startup be seized.
“A Kenyan High Court has frozen another Ksh 400.6 million in three bank accounts and 19 Safaricom M-Pesa paybill numbers belonging to Flutterwave linked to card fraud and money laundering,” Kenyan media reported this week.
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 wrongdoings in Kenya. The company described such claims as false, stating that they have records for relevant authorities to verify.
The company has disclosed its plan to use the proceeds from the listing to grow its expansion into new African opportunities.
