Despite heavy allegations, the African Unicorn, Flutterwave, plans to offer loans to business owners in Nigeria by the end of the year. It is also preparing for an initial public offering on the Nasdaq stock exchange.
Flutterwave Seems Unfazed by Accusations Goes on with IPO Plans
Flutterwave Inc. is in the news again. A Kenyan court has frozen Ksh400.6 million, which is about 1.4 billion Nigerian Naira, in its accounts. However, the African-focused financial company has refused to halt its expansion plans.
The firm continues with plans for an initial public offering (IPO) on the Nasdaq stock exchange. The generated funds will fund entrance into new markets in Africa and broaden the existing ones. This was revealed by the CFO, Oneal Bhamnani, who joined the company in June.
Backed by Tiger Global Management LLC and B Capital Group, the fintech is valued at over $3 billion. While its bank accounts were frozen in Kenya under anti-money laundering laws and it has been restricted from operating payments in the country, Bhamnani believes that the payment company is one that is “reaching the scale and trajectory comparable to what other investors seemed to invest in the public markets,” Bloomberg reports.
In July, the Asset Recovery Agency (ARA) in Kenya was granted a court order to freeze about KSh6.2 billion which was in 62 accounts. Flutterwave and seven other companies were accused of involvement in card fraud and money laundering. The recent allegation also carries the same charges.
The course granted the ARA application to prevent Flutterwave from transferring or withdrawing funds from three bank accounts. The restriction was from two accounts in UBA, one in Access Bank, and 19 Safaricom M-Pesa paybill numbers.
Despite these accusations of financial misconduct which it denies, the Startup which has Uber Technologoes Inc. and Flywire Corp as customers, plans to update the services it offers.
Flutterwave to Offer Digital Loans to Nigerian Businesses by Year End
Flutterwave has processed 200 million financial transactions across 34 African countries valued at about $16 billion so far. Now it plans to update its services, adding lending to its speciality in cross-border transactions.
Bhambani explains this expansion into lending to be an “opportunity to invest and really develop solutions for the largest enterprises in the world that transact in Africa.”
The plan is for Flutterwave Capital to offer collateral-free, digital loans to businesses in Nigeria. This service is slated for offering by the year’s end.
Other allegations including employees’ rights, harassment, and bullying, have also faced the firm. On this, the company has reportedly taken action against those found culpable of such in the company.
Although doubts are cast over these Flutterwave plans, the firm seems resolute in achieving its goals. Earlier in the month, it hired 200 trainees for its Graduate Intern Program in Nigeria. However, if these allegations keep popping up, it might call for a deeper look into the firm’s dealings.