FairMoney, a Lagos-based digital bank, is reportedly in talks to acquire Umba, a credit-focused digital bank in Nigeria and Kenya, in a $20 million all-stock deal.
This move reflects FairMoney’s strategic expansion plans, aiming to grow its customer base and presence, especially in Kenya.
Stay well-informed and be the very first to receive all the most recent updates directly in your email! Tap here to join now for free!
Umba has raised approximately $20 million in funding from notable investors such as Costanoa Ventures, Tom Blomfield (co-founder of Monzo), and Lux Capital, among others. Meanwhile, FairMoney, backed by investors like Tiger Global and DST, has raised over $57 million to date and was valued at $400 million to $500 million following its last funding round.
Umba, established in 2018 in San Francisco by Tiernan Kennedy and Barry O’Mahony, provides various banking services in Nigeria and Kenya, such as loans, current accounts, savings accounts, and bill payments.
If successful, this acquisition would mark FairMoney’s latest move in its expansion strategy. The digital bank, known for its lending services in Nigeria, has been exploring avenues for growth and diversification. It recently ventured into India as its second market and has been expanding its product offerings beyond lending to include debit cards, transfers, and payments.
FairMoney’s potential acquisition of Umba in Nigeria and Kenya aligns with their vision for synergies between retail and merchant-focused services.
The acquisition could provide FairMoney with a streamlined entry into the Kenyan market through Umba’s microfinance license. This move reflects broader trends in African fintech, where digital banks are seeking consolidation and strategic partnerships to navigate market challenges and capitalize on opportunities.
Stay well-informed and be the very first to receive all the most recent updates directly in your email! Tap here to join now for free!
