Nigeria based mobile payment startup OPay secured USD 50 Mn from Sequoia China, IDG Capital, Source Code Capital, Meituan-Dianping, GSR Ventures and Opera Limited. The startup was founded in 2018 by the famous browser company Opera.
In a seemingly crowded market for mobile payment solutions, this is a significant mileage for a company that plans to diversify as well as expand. Going by the company stats, as of June 2019, OPay had more than 40,000 active agents and saw daily transaction volumes in excess of USD 5 Mn.
Chairman and CEO of Opera Limited, Yahui Zhou, commented, “By incubating OPay and supporting the company through its rapid acceleration, Opera has also demonstrated its ability to leverage its brand and consumer reach to create attractive, fast-growing businesses on the African continent. We are highly pleased by the team’s results and are excited to continue supporting OPay as the journey continues.”
Not remaining just as payment solutions, OPay is trying to get in into various verticals of on-demand services. Late in May this year, the company joined the bandwagon of bike hailing apps in Nigeria. Another service that seems in conjunction with OPay is their new service OFood.
On the face of it, the expansion seems like a smart strategy backed on Opera’s digital capabilities and reach. Getting the services known to consumers will be an easier task owing to Opera’s reach of 120 million in Africa. This could be an added advantage to OPay’s situation as the competing platforms will have to burn marketing dollars to reach the vast audience.
Additionally, money secured by OPay comes from investment powerhouses across the globe. The marquee investors in the company have already been known for creating Unicorns and specialise in handling internet- businesses.
Meituan-Dianping, the chinese company which raised a Series F of USD 4 Bn in 2017, also comes in with expertise in online food delivery business. So, the country can prep up for another line of frenzy offers and services in the near future.
“OPay has successfully built a leading mobile payment business in Nigeria in a short period of time. We are excited to be part of its continued growth, as it provides access to better mobile banking services for Nigeria’s 200 million population, and expands into new areas,” said Qingsheng Zheng, Partner of Sequoia China.
Though the company’s semblance with Jumia cannot be ignored (headquarters, business-models), the market will decide how it lets the platforms settle for their market shares.