Telecom MTN Looks for Investors in FinTech Unit

South African telecom MTN is looking for minority investors for its FinTech unit after separating it from its traditional business to capitalize on the division’s growth, Bloomberg reported Wednesday (March 9).

MTN — the largest mobile phone company in Africa — is set to finish the separation by the end of June, with a similar project involving its fiber network division set to conclude next year, according to the report.

“We will be working on bringing strategic equity partners into the FinTech business during the second part of the year that can help us accelerate the growth of this business,” CEO Ralph Mupita said, per the report.

The company is also set to receive a mobile banking license in Nigeria, its largest market, giving MTN a new market of millions of financial services customers, the report stated. Last year saw MTN’s mobile money transactions rise 57% to $24 billion.

Africa has seen a host of fast-growing startups in the mobile payments sector as digitization becomes more prevalent, according to the report.

Last month, Flutterwave, a Nigerian company that expedites cross-border money transfers throughout Africa and works with brands like Facebook, Uber and Booking.com, raised $250 million in a Series D funding round that valued the firm at $3 billion.

Read more: Flutterwave Raises $250M Series D at $3B Valuation

Earlier this year, PYMNTS named MTN’s Ayoba — considered Africa’s first super app — as one of three telco-driven apps to watch in 2022.

See more: 3 Telco-Driven Apps to Watch in Emerging Markets in 2022

Available to both MTN and non-MTN customers, this app gives users access to a broad range of digital and media services, including payment solutions, over 180 content channels ranging from sports news, music to fashion and travel, along with access to 35 micro-apps, including MTN Online School (South Africa) and MTN MoMo (Ghana).