Jambo,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Moniepoint to acquire 78% stake in Kenya’s Sumac Bank
- This startup wants to track every car in Africa
- Payments giant to acquire AZA Finance
Moniepoint to acquire 78% stake in Kenya’s Sumac Bank
Moniepoint just got the green light to acquire a 78% stake in Kenya’s Sumac Microfinance Bank, and it’s a big step for the Nigerian fintech’s expansion plans. Kenya’s competition watchdog, the Competition Authority of Kenya (CAK), gave its approval without any conditions, saying the deal doesn’t pose any risk to competition or public interest.
The CAK’s analysis found that the acquisition wouldn’t shake up Kenya’s financial ecosystem. Sumac is a mid-sized player with just 4.3% of the microfinance market, and Moniepoint doesn’t currently operate in the country, so there’s no risk of market dominance or concentration.
There were no red flags for employment either. The regulator confirmed that no jobs will be lost as a result of the deal, and all of Sumac’s staff will stay on with their current terms. That’s good news for employees and a relief for watchers worried about corporate shakeups.
This move marks Moniepoint’s first official entry into Kenya’s financial services scene. The Nigerian fintech is now joining a growing list of Nigerian firms betting big on East Africa.
Access Bank, for instance, recently wrapped up its acquisition of the National Bank of Kenya, and Flutterwave already has a presence in the country with services including M-PESA integrations and international payments. It’s all part of a wider push by Nigerian firms to deepen their footprint across Africa.
Sumac, founded in 2002, offers everything from lending to forex trading. Moniepoint says the acquisition will give it a strong launchpad to serve local businesses in Kenya and possibly unlock more regional opportunities.
This startup wants to track every car in Africa
Back in 2019, Ayodeji Audu needed a loan to relocate out of Nigeria. He tried using his car as collateral, but the bank’s valuation was laughably low. That experience stuck with him, and years later, it led to the birth of Reown, a startup building Africa’s largest vehicle history database.
Before founding Reown, Audu had a stint in medical sales, then co-founded Swipe, a credit card startup for young Nigerians. During his three years at Swipe, the startup grew to over 100,000 users, raised half a million dollars, and partnered with banks. In 2023, he moved on to Reown, teaming up with co-founders John Obi and Sesan Olaniyan to tackle Nigeria’s fragmented vehicle data problem.
At first, Reown tried collecting info from government sources and roadside mechanics. But government records were patchy, and most mechanics ran on vibes and paper notebooks. So the team built a garage management tool that helps structured garages digitise their work, and in return, Reown gets valuable vehicle data from every oil change and tyre swap.
The startup ran a successful pilot in Lagos Mainland and even attracted an acquisition offer from a multinational with garages across Africa. But after months of back and forth, the deal collapsed over vision misalignment. That hit hard. Reown burned through cash and had to let people go. Still, the startup is picking up signals on a new path forward.
To find out what’s next for Reown and how they plan to reshape auto data in Africa, read Chimgozirim’s full story here.
Payments giant to acquire AZA Finance
Uruguayan cross-border payments giant dLocal is making a bold move into Africa with plans to acquire AZA Finance, a fintech that’s been operating on the continent for over a decade. The deal is still subject to regulatory approval.
dLocal says the acquisition will give its global merchants better access to Africa’s fast-growing markets. “We’re combining forces with AZA to deliver more localised and efficient payment solutions across the continent,” said Carlos Menendez, dLocal’s COO, in a statement. The move signals the company’s deeper commitment to the region.
AZA Finance, founded in 2013, offers payment, FX, and remittance services in multiple African countries. It claims to have processed over 15 million transactions and served 1.5 million users. The startup is backed by the likes of Greycroft, Draper Associates, and Plug and Play, and last raised $15 million in 2021 from the Development Bank of Southern Africa.
For dLocal, this will be its first acquisition in Africa and its biggest one yet. The company already operates in 12 African markets and has partnerships with players like iTransfer and Airtel Money, but the AZA deal gives it deeper infrastructure and regulatory muscle across the continent.
By plugging into AZA’s local networks, dLocal hopes to offer smoother cross-border transactions and gain ground against major global payment players eyeing the same markets. If approved, this could be a defining move in Africa’s increasingly competitive fintech space.
In case you missed it
- Nigeria’s postal service wants to become a fintech. Will the market take it seriously?
What I’m watching
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Opportunities
- Want to exhibit or attend the Lagos Startup Expo in June? Visit this website here.
- Marvin Records is looking for a Senior/Lead Business Development Manager. Apply here.
- PalmPay has several openings. Apply here.
- Moove is hiring. Apply here.
- Moniepoint is hiring for several positions. Apply here.
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Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
