Three months ago, Mastercard invested $100 million in Airtel Mobile Commerce BV (AMC BV) — the mobile money business of telecom Airtel Africa. This was two weeks after it received $200 million from TPG’s Rise Fund.
Today, the African telecoms operator said it has secured another investment for its mobile money arm. The investor? Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, with over $300 billion in assets. The Middle Eastern corporation is set to invest $200 million into AMC BV through a secondary purchase of shares from Airtel Africa.
AMC BV is an Airtel Africa subsidiary and the holding company for several of Airtel Africa’s mobile money operations across 14 African countries, including Kenya, Uganda and Nigeria. The mobile money arm operates one of the largest financial services on the continent. It providesusers access to mobile wallets, support for international money transfers, loans and virtual credit cards.
According to a statement released by the telecoms operator, the proceeds of the investment will be used to reduce debt and invest in network and sales infrastructure in operating countries. The deal will close in two tranches — $150 million invested at the first close, most likely inAugust. The remaining $50 million will be invested at the second close.
Airtel Africa claims QIA will hold a minority stake while it continues to hold the majority stake. This transaction still values Airtel Africa at $2.65 billion on a cash and debt-free basis. However, what’s different this time is that QIA is entitled to appoint a director to AMC BV’s board and “to certain customary information and minority protection rights.”
Airtel Africa’s most recent report for Q1 2021 shows signs of growth. The telecoms operator saw year-on-year revenue growth of 53.7%, pushed by 24.6% growth in customer base to 23.1 million. Transaction value went up 64.4% to $14.7 billion ($59 billion annualized), and EBITDA stood at $60 million ($240 million annualized) at a margin of 48.8%. The company also generated $124 million in revenue ($496 million annualized), while its profits before tax for Q1 2021 stood at $185 million.
Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, said the sovereign wealth fund’s investment in Airtel Africa would help promote financial inclusion in sub-Saharan Africa. “Airtel Money plays a critical role in facilitating economic activity, including for customers without access to traditional financial services. We firmly believe in its mission to expand these efforts over the coming years,” he added.
In February, Airtel Africa first made it known that it wanted to sell a minority stake in AMC BV to raise cash and sell off some assets. The subsequent month, it sold telecommunication towers in Madagascar and Malawi to Helios Towers for $119 million and raised $500 million from outside investors.
FAQs
Aligned with its parent company's three-tiered business model encompassing digital infrastructure, digital experience, and digital services, Airtel Africa has a comprehensive growth strategy named “Win with.” This strategy revolves around six key pillars: network, distribution, data, mobile money, cost, and people.
What is the valuation of Airtel Money Africa? ›
In 2021, TPG invested $200 million in Airtel Money at a $2.65 billion valuation and MasterCard Inc. invested $100 million. At the time, the wireless carrier said it was considering a listing for the business within four years.
Is Airtel mobile money available in Nigeria? ›
Airtel Money is a Mobile Commerce service from Airtel in partnership with Central Bank of Nigeria licenced operator that allows customers use their mobile number as an electronic wallet.
How much mobile money growth in Nigeria? ›
Mobile money adoption and active use continued to grow but at a slower rate than in previous years. Registered accounts grew to 1.75 billion in 2023, a 12% year-on-year increase. However, this is a lower annual growth rate than the 15% seen in 2022 and 19% seen in 2021.
How does Airtel make money? ›
Subscriptions: Airtel charges customers for the use of its mobile and fixed-line telephony, broadband, and TV services, typically through monthly subscriptions. Mobile services: Airtel generates significant revenue from the sale of mobile services, including voice and data services, as well as mobile money services.
Is Airtel successful in Africa? ›
Airtel Kenya is the second largest operator and has about 9 million customers. Airtel holds second place in the mobile telecom market in Madagascar, has a 39% market share and over 1.4 million customers. Airtel Malawi is the market leader with a market share of 72%.
Who is the CEO of Airtel Money Africa? ›
Sunil Taldar has been appointed as the new CEO of Airtel Africa, succeeding Olesegun “Segun” Ogunsanya who is retiring, effective July 1. Taldar, previously the Director of Transformation, joined the Africa group in October 2023.
Who is the CEO of Airtel Africa? ›
Segun Ogunsanya is the managing director and chief executive officer of Airtel Nigeria, subsidiary of the Indian telecommunications conglomerate, with subsidiaries in 14 Sub-Saharan African countries.
WikipediaThe current share price of Airtel Africa Plc (AIRTELAFRI) is NGN 2,200.00. AIRTELAFRI closed its last trading day (Wednesday, April 17, 2024) at 2,200.00 NGN per share on the Nigerian Stock Exchange (NGX).
Can Airtel receive money from USA? ›
📥 Can Airtel receive money from abroad? Yes, Airtel can receive money from abroad, but not directly. To receive money from abroad with Airtel, your sender must use a third-party money transfer service like Remitly, WorldRemit, Wise, or Skrill to make a remittance.
As of November 2020, the number of Airtel subscribers in Nigeria added up to 57 million. From January to August of the same year, the number of users was stable at around 50 million, according to data published by the Nigerian company Nairametrics. Airtel is the third largest mobile telecoms operator in Nigeria.
Can I withdraw money from Airtel money? ›
With Airtel Payments Bank account, customer can deposit & withdraw cash, transfer funds to other's Airtel Payments Bank Account and other bank accounts, recharge mobile & DTH, pay bills, book tickets, pay shops, make online payments and much more.
Which mobile network is the richest in Nigeria? ›
MTN holds the biggest market share of all the network providers in entire Africa, having a customer base of over 62 million. GLO or Globacom was launched back in 2003, just two years after MTN was launched in the country. GLO is owned by the second richest Nigerian, Mike Adengua.
How many people use mobile money in Nigeria? ›
GSMA also states that “Not only are more people registering for mobile money accounts, but many who have signed up are actively using mobile money for their everyday needs – more than users have in previous years.” The number of mobile money accounts in Nigeria was over 60 million in 2022, according to Statista.
Do Nigerians use mobile money? ›
Moreover, between 2019 and 2022, the share of the population reporting to use mobile money accounts in Nigeria remained stable. Indeed, this value stood at 5.6 percent in all four years under consideration.
What are the strategies used by Airtel? ›
Airtels marketing strategy approach centers on competitive pricing, notwithstanding regulations. Airtel users can customize and pay per pack (e.g., MyPlan service to customers to choose their plan and pay the price accordingly). Airtel's combo offerings retain customers and boost revenue.
What is the corporate strategy of Airtel? ›
At Airtel, our strategy remains consistent. Focus on winning quality customers and a relentless obsession with customer experience. Underpinning this are our core enablers. Bringing the power of Airtel through a unified view of the customer backed by an integrated channel approach.
What is the people strategy of Airtel? ›
Through our overarching strategy of 'Win With People' we have endeavoured to create a philosophy that seeks to sustain a growth that is symbiotic in nature. We have built an eco-system that helps create an impact across five people pillars at Airtel. We at Airtel believe that our people are our key differentiators.
What is the strategic approach adopted by Airtel? ›
Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing, sales and finance and building the 'minutes factory' model of low cost and high volumes. The strategy has since been adopted by several operators.
