MTN seeks investors for fintech arm MoMo, looks to sell 30 percent stake

The MTN Group has stated that its fintech division, MoMo, seeks to bring on more investors.

This disclosure comes one day after the big agreement, in which payment processor Mastercard agreed to buy a small share in MoMo, was made public by the telecom giant. The current market value of MoMo is a staggering $5.2 billion.

CEO Ralph Mutipa provided insight into the corporation’s upcoming move regarding the deal when he remarked, “We are open to selling up to a maximum of 30% of the fintech business.”

He continued by saying that to achieve that goal, three to four investors would be required. Given that MTN already has Mastercard, three seems like a likely number.

Read Also: MTN Foundation to gift youths equipment worth N90m in its ICT, business skills training

Mupita also highlighted the importance of mobile money services to Africans.

“With mobile money and fintech services, you are able to leapfrog people from not having any financial services to using the phone to provide a lot of financial services,” he explained.

MoMo currently serves over 46 million customers across 21 markets in both Africa and the Middle East.

Mastercard’s investment, alongside that of the other parties, could unlock many growth opportunities for MoMo.

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