Africa unicorn, Flutterwave, is preparing to raise the sum of $250 million through an Initial Public Offer (IPO), a move that could become Nigeria’s most significant technology listing.
Checkout Magazine gathered that the company has invited the Federal Government to invest $75 million in the proposed offer through the Ministry of Finance Incorporated (MoFI).
The proposal, according to sources, was part of Flutterwave’s strategic effort to secure sovereign endorsement.
Flutterwave is a payment processing company that empowers businesses of all sizes with seamless payment solutions tailored for enterprises, startups, and emerging markets.
It has the Switching and Processing License of the Central Bank of Nigeria (CBN).
Flutterwave was founded in 2016 by three Nigerians-Iyinoluwa Aboyeji, Olugbenga Agboola, and Adeleke Adekoya, but it is headquartered in San Francisco, California. It is regarded as a unicorn, a reference to a privately owned company that has achieved rapid growth and valued above $1 billion.
A source said: “The Federal Government is being invited to invest up to $75 million, but no concrete agreement has been reached. However, Flutterwave has already secured institutional investors, some of which are represented on its board, alongside new external institutional investors showing strong interest in the offer”.
In furtherance of the proposed transaction, the Federal Government is believed to have engaged two of the four biggest global accounting and auditing firms to carry out a comprehensive review of Flutterwave’s financial statements and operations.
The source said the government wanted to be certain of the company’s valuation, structure, and long-term viability before committing public funds.
The process, insiders said, was activated following a meeting between Flutterwave executives and President Bola Tinubu.
The source said: “To get the government’s buy-in, a delegation from Flutterwave met with President Tinubu. That meeting set things in motion. The President asked them to work things out with the Ministry of Finance and MoFI”.
It was learnt that Flutterwave has since made a formal presentation to the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, and the leadership of MoFI to advance discussions on the potential investment.
The source further noted that the fintech giant intends to use the IPO as a means of “democratising ownership” and deepening Nigerian participation in its growth story.
