$400m SoftBank-led round pushes African fintech startup into unicorn club

African payments platform OPay has claimed the unicorn title after banking US$400 million in a series C funding round led by SoftBank Vision Fund 2. With the fundraise, OPay’s valuation now stands at US$2 billion.

Other investors DragonBall Capital, Sequoia Capital China, Source Code Capital, SoftBank Ventures Asia, Redpoint China, and 3W Capital also participated in the round.

Photo credit: OPay

The fintech startup will use the new capital to strengthen its market position in Nigeria and Egypt and accelerate its expansion to other countries in Africa and West Asia.

Both these regions have accounted for the largest increase in the firm’s registered accounts in absolute terms over the last five years, with Africa seeing 160 million active users and a US$490 billion transaction value, the company said.

Founded in 2018, OPay provides offline and online payments and digital wallet services for clients through its AI-backed app. Currently, the startup’s monthly transaction value has surpassed US$3 billion, according to the company.

“We believe our investment will help the company extend its offering to adjacent markets and replicate its successful business model in Egypt and other countries in the region,” said Kentaro Matsui, managing director at SoftBank Group.

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OPay is the second fintech unicorn from Africa after Flutterwave and the third unicorn from the country after ecommerce giant Jumia, according to a TechCrunch report.