Airtel will make its mobile money unit public in 2025, despite ongoing plans to extend the service to other African countries. The service currently operates in 14 countries.
CEO Olusegun Ogunsanya stated, “Next year, we will list. We will keep adding more countries. We’re still a year away from the IPO.” He didn’t reveal specifics about the preferred stock exchange for the listing.
Airtel Money, Airtel Africa’s fastest-growing division, could potentially attain a valuation of over $4 billion. Its performance contrasts with the company’s previously released financial results, which challenging macroeconomic conditions significantly affected, leading to decreased profitability for most of the financial year.
These challenges resulted in an $89 million loss after tax, a substantial decline from the $750 million profit recorded at the end of the previous year.
Despite the overall financial challenges, the mobile money unit shone brightly alongside its data revenues.
Airtel mobile money saw a 38.2% increase in transaction value in constant currency, reaching an annual transaction value of over $112 billion in reported currency. Year-on-year, mobile money customers grew by 20% to 38 million, propelled by continued strong performance in East Africa and Francophone Africa.
Airtel’s planned mobile money IPO is part of a trend of investment in African mobile money providers. Two years after investing $100 million in Airtel Money, Mastercard has acquired a minor stake in MTN’s mobile money arm.
Airtel Mobile Money dominates in six markets, with four located in East Africa: Zambia, Uganda, Tanzania, and Malawi, according to the CEO.
The remaining two are Gabon and DR Congo, situated in Francophone markets. The winning strategy encompasses first-mover advantages, crucial infrastructure, and distribution networks. Ogunsanya asserted that Airtel leads in the Zambia and Malawi markets. In Uganda, competition is limited due to the existence of only two operators, while in Tanzania, there are only three operators.
“We were the first to deploy ATMs, which gave us a head start,” Ogunsanya says. “Our network comprises 29,000 exclusive mobile money branches, with a well-established system. We’ve been able to effectively leverage our infrastructure.”