Flutterwave buys Nigeria’s Mono in exiting African fintech

Africa’s largest fintech company, Flutterwavehe found Nigeria’s open banking system Mono in a deal worth between $25 million and $40 million, according to people familiar with the project.

The acquisition brings together two of Africa’s leading fintech companies. Flutterwave operates one of the world’s largest payment networks, while Mono, often referred to as “Plaid for Africa,” has developed APIs that allow businesses to access banking information, initiate payments, and verify customers.

There he is earned about $17.5 million from investors, including Tiger Global, General Catalyst, and Target Global. Sources close to the deal said the takeover allowed all investors to recoup their money, with some early backers realizing returns of up to 20x. Mono will continue to operate as an independent product, the companies said in a statement.

Launched in 2020, Mono, like Plaid, uses APIs that allow users to agree to share banking information, which helps financial institutions analyze income, spending, and debt repayment.

The company it will address the lack of common banking practices across African marketswhere credit institutions remain small and fintechs, especially lenders, often rely on bank customer profiles to determine creditworthiness.

According to the CEO Abdulhamid Hassanalmost all Nigerian digital lenders now rely on Mono’s infrastructure. The company claims to have supported over 8 million bank accounts, representing about 12% of the banked population in Nigeria. It also claims to have provided 100 billion in loans to corporate borrowers and arranged millions in direct bank payments. Clients include Visa-backed Moniepoint and GIC-backed PalmPay.

For Flutterwave, which manages local and cross-border payments in more than 30 African countries, this partnership expands its integration. In addition to payments, the company can now provide checks and notifications, bank account verification, data-driven risk assessment, and one-time or recurring bank payments within a single package.

Flutterwave CEO ‘GB’ Defender Agbola planned the acquisition as a bet on the next phase of fintech growth in Africa. “Payments, data, and trust cannot exist in silos,” he said. “Open banking provides connective tissue, and Mono has built an important foundation in this space.”

Hassan echoes this, saying Africa is entering a debt-driven environment as governments across the region push for debt-led financial inclusion. This change depends on both data availability and regulatory confidence, especially in markets like Nigeria, where open banking systems are still in development.

“If the economy is going to be debt-driven, you need deep intelligence to understand how people earn and spend,” Hassan said. “But at the same time, for open banking to work, regulators need to be sure that customers’ money is safe.”

Based on this, joining Flutterwave replaces Mono to quickly increase when barriers fall. Flutterwave is already active in many African markets, with local licenses, enterprise customers, and audience groups.

“This enables us to maximize the potential of businesses operating in all African markets while remaining focused on security, compliance, and local demand,” said Agboola.

The deal marks the first joint venture in the global fintech industry, including Visa failed to acquire Plaid in 2020which was closed by the US authorities. Hassan said the deal is proof that combining data and payment rails can be liberating.

All companies funded by Y Combinator count Tiger Global (which led Investor Flutterwave Series C and Mono’s Series A) of their helpers. Hassan said, however, the company did not support the project. In fact, the partnership grew out of a long-standing partnership between the two companies, which have agreed on a number of banking services over the years.

The merger took place against the backdrop of an open banking landscape that has changed dramatically over the past five years.

When Mono was launched, it faced competition from companies like Base10 Partners-backed Okra and Ribbit Capital-backed Stitch. Since then, Mono has emerged as a major player in the space, following Okra closure it’s Stitch’s pivot to immersive gaming that has made this possible add more money.

Speaking to Mono’s fund before the purchase, Hassan said the company, which, according to Pitchbook, woke up. $15 million in Series A at a cost of $50 million after financing in 2021, they are not forced to sell Flutterwave and are on track to turn a profit this year. With more capital, he added, raising the stake would bring new valuations and growth prospects in a difficult-to-fund environment.

However, beyond the two companies involved, the sale – similar to consolidation between South African fintechs Lesaka and Adumo – shows the great evolution of African fintech, where startups that once wanted to become independent giants can achieve better results by merging with larger platforms.