Airtel Mobile Money raises $200m, sets timeframe for IPO

Airtel Africa’s mobile money business has raised $200 million from The Rise Fund, as the money transfer platform eyes initial public offering within the next four years. The new funding is expected to raise the mobile money valuation to $2.65 billion.

The mobile money, which bears an official name as Airtel Mobile Commerce, intends to utilise the fund to expand its operations in fourteen markets where Airtel currently operates, including Nigeria.

It was gathered that the deal will enable The Rise Fund hold a minority stake in the mobile money business, while Airtel Africa will hold a majority stake, this is according to a statement sent to the investing public.

Airtel still plans to monetise its assets, as the company is still in talks with some investors willing to take up minority stake in the mobile money company. Airtel is planning to part with 25 percent of Airtel Mobile Commerce.

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The deals are expected to prep the company for an IPO that is expected to happen before 2024. It will also be used to reduce the company’s debt. The transaction will be done in two tranches.

The company said, “The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.

“The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV. There can be no certainty that a transaction will be concluded or as to the final terms of any transactions.

“The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.”

It was also stated that, “The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.”

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