OPay, a Nigerian fintech startup, has experienced a significant increase in its valuation, with Opera, an early investor in OPay, revealing that the fintech’s valuation has surged by over 30% since its Series C funding round in 2021.
OPay’s growth can be attributed in part to Nigeria’s digital payments boom, which was accelerated by challenges in the country’s traditional cash-based economy. Cash shortages in 2023 led to a surge in digital transactions via platforms like Moniepoint and OPay, resulting in record-high national payment volumes totaling N611 trillion for the year, according to the Nigerian Inter-Bank Settlement Scheme (NIBSS).
Originally known as Paycom, OPay emerged in 2018 following its acquisition by Norwegian software internet company, Opera, which initially held a stake in the company. However, Opera’s ownership gradually declined over time, reaching 6.4% by 2021.
In early 2023, Opera’s stake in OPay increased to 9.4% after it sold Nanobank, its Asian fintech subsidiary, to OPay in exchange for equity. Recent filings with the US Securities and Exchange Commission (SEC) disclosed that Opera’s 9.4% stake in OPay is valued at $253 million, indicating a valuation of $2.7 billion for OPay.
Despite challenges such as fraud and regulatory scrutiny, OPay has experienced significant user growth and revenue expansion. In 2023, the company quadrupled its user base and achieved over 60% revenue growth on a constant currency basis, according to Opera.
However, regulatory bodies like the Central Bank of Nigeria have tightened rules to address concerns related to fraud and customer safety in the fintech sector.
