Kopo Kopo, a Kenyan fintech company specializing in short-term business loans, has appointed new leaders as it continues acquisition talks with Nigerian digital bank Moniepoint Inc.
On Monday, Kopo Kopo named Dennis Ondeng as its new CEO. The company also announced three other key appointments:
Chad Larson as Chief Financial Officer (CFO)
Kibet Yegon as Chief Technology Officer (CTO)
Rosemary Muyeshi as Chief Risk Officer (CRO)
In a statement, Kopo Kopo expressed confidence that this new leadership team will help further the company’s mission and continue providing solutions for Kenyan businesses.
These leadership changes come 13 months after Kenya’s competition authority approved Moniepoint’s proposed acquisition of Kopo Kopo. Despite the new appointments, Moniepoint confirmed to TechCabal that the acquisition is still in progress but not yet completed.
Kopo Kopo claims to have been profitable since raising $2.1 million in a Series B funding round in 2015. While the company hasn’t shared specific numbers, it says its valuation is in the “low tens of millions” of dollars.
If the acquisition goes through, it would mark Moniepoint’s expansion into the Kenyan market. Kopo Kopo’s existing network of thousands of small and medium-sized business customers could provide Moniepoint with a strong foothold in Kenya.
The fact that Kenya’s regulators are reviewing the deal suggests its value exceeds 1 billion Kenyan shillings (about $7.7 million). Transactions above this amount require regulatory scrutiny to ensure fair competition.
This potential acquisition highlights the ongoing trend of consolidation and expansion in Africa’s fintech sector. Companies are looking to grow their reach across the continent and offer a wider range of financial services.
For Moniepoint, acquiring Kopo Kopo could be a strategic move to enter the East African market and diversify its offerings. Kopo Kopo’s experience in providing short-term loans to businesses could complement Moniepoint’s existing services.
The fintech landscape in Africa continues to evolve rapidly, with companies seeking ways to serve the continent’s large unbanked and underbanked population. By combining forces, fintech firms aim to reach more customers and offer more comprehensive financial solutions.
As the acquisition talks continue, both Kopo Kopo and Moniepoint will likely be focused on ensuring a smooth transition if the deal is finalized. The new leadership team at Kopo Kopo may play a crucial role in managing this process and preparing the company for potential integration with Moniepoint.
The outcome of this acquisition could have significant implications for the fintech ecosystem in both Kenya and Nigeria, potentially setting the stage for more cross-border fintech partnerships and acquisitions in the future.
