TPG to Invest $200 mn in Airtel Africa Mobile Money Biz

• Airtel Africa to explore the potential listing of mobile money business within four years

Investment firm TPG’s Rise Fund will invest USD 200 million in Airtel Africa’s mobile money business at a valuation of $2.65 billion, Bharti Airtel said on Thursday.

The Rise Fund will provide the funds in two batches — $150 million first and then the remaining $50 million in a second round.

With this transaction, Rise Fund is estimated to get 7.5 per cent stake in Airtel Mobile Commerce AMC BV which is currently the holding company for several of Airtel Africas mobile money operations.

“The transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years,” Airtel said.

Operating under the Airtel Money brand, Airtel Africa’s mobile money services offer financial services which include mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card, and international money transfers.

Airtel Mobile Commerce BV is currently the holding company for several of Airtel Africa’s mobile money operations in 14 countries.

“Our markets afford the substantial market potential for mobile money services to meet the needs of the tens of millions of customers in Africa who have little or no access to banking and financial services, and this demand is driving growth,” Airtel Africa CEO Raghunath Mandava said.

The proceeds will be used to reduce group debt and invest in network and sales infrastructure in the respective operating countries.