Nigerian FinTech OPay Eyes $4 Billion Valuation for US IPO

OPay Digital Services, a payments platform focused on Nigeria and backed by SoftBank Vision Fund and Sequoia Capital, is preparing for an initial public offering (IPO) in the United States, Bloomberg reported Friday (May 1), citing unnamed sources.

The company is seeking a valuation of $4 billion, which would double the $2 billion valuation it achieved in a 2021 funding round, and it could launch the IPO by the end of the year, according to the report.

OPay did not immediately reply to PYMNTS’ request for comment.

According to the Bloomberg report, OPay was founded by Chinese tycoon James Yahui Zhou, who also founded Kunlun Tech, which owns the web browser company Opera. OPay now has 40 million users.

It was reported in August 2021 that SoftBank’s investment in OPay was the global technology investor’s first foray into Africa. In that funding round, OPay raised $400 million.

OPay said in a Jan. 18 press release that it formed a new global core management team on Dec. 1, that includes Zhou as executive chairman and former Citigroup managing director James Perry as chief financial officer.

The company described itself in the release as a leading digital banking platform in emerging markets and said the new management team would lead its “new strategic chapter.”

OPay said in the release that “this management upgrade integrates seasoned expertise across strategy, globalization, operations and finance, forming a strong leadership synergy. The new team will accelerate OPay’s global expansion and deliver greater value to users worldwide.”

The company had already announced Perry’s appointment as CFO in a Dec. 18 press release in which it said he would oversee its financial strategy planning, capital structure management and investor relations. It said that during his 22 years at Citigroup, Perry directed and executed several mergers, acquisitions and capital market transactions for technology companies.

“[OPay] believes his exceptional international finance experience will provide strong support for OPay’s global strategic expansion and operational excellence,” the company said in the release.

The company said in a March 31 press release that it opened a new office in Nigeria to strengthen its nationwide network and expand access to financial services.