The Rise Fund Will Invest $200 Million In Airtel Africa’s Mobile Money Arm

The Rise Fund, the global impact investing platform of alternative investment firm TPG, will invest $200 million in Airtel Africa’s mobile money business, according to a Thursday (March 18) announcement.

The transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis, per the announcement. The deal gives the Rise Fund a minority share in Airtel Mobile Commerce BV (AMC BV), an Airtel Africa subsidiary that operates the company’s mobile money ventures in 14 countries.

Yemi Lalude, who leads Africa investing for The Rise Fund, said Airtel Money offers a unique platform that provides financial inclusion, an important issue across Africa, closing a gap between traditional financial institutions and unbanked people.

“We look forward to working with Airtel Africa to enhance their mobile money services, broaden its use cases, and grow into new markets,” Lalude said in the announcement. “With this investment in Airtel Africa’s mobile money operations, we are excited to expand The Rise Fund’s global fintech portfolio and continue to deepen our focus on improving financial inclusion in Africa and around the world.”

PYMNTS reported last year on the “quiet revolution” in cashless payments in Africa. The pandemic may be helping shape this movement. Last year demonstrated a shift toward digital payments in Nigeria, a country where cash was essentially king. When the pandemic hit, opportunities for in-person cash payments became scarce, and the need for digital payments skyrocketed.

“We saw significant upsurge in the number of signups — about five times growth in the first two months of Q2 versus Q1 for new registrations,” Jay Alabraba, co-founder of Nigerian payments platform Paga, told Karen Webster. “We also saw a significant growth on the merchant side when it came to taking non cash payments as well. The number of merchants recruited during the lockdown period pretty much doubled from what we had in January and February.”