2024 has been a significant year for African tech, with the rise of two new unicorns – Moniepoint and TymeBank. The impact extends beyond their individual success; they represent a preview of what’s possible. These companies are not just milestones in valuation but also reflections of the vast opportunity within Africa’s startup landscape.
At Baobab Network, we’ve always believed in the transformative potential of tech-enabled solutions to solve Africa’s most pressing challenges and fintech plays a critical role in unlocking this growth in multiple sectors across the continent. To date we have supported 18 fintechs, such as Lemonade Payments (Kenya), eMaishaPay (Uganda), Alal (Senegal), HadiFinance (Nigeria) and FX Kudi (Ghana) – all of whom are moving this sector forward.
Moniepoint: Empowering Africa’s SMEs
Nigeria’s Moniepoint reached unicorn status this year after raising $110 million in a funding round backed by global investors, including Google (Source:Reuters). The company has carved out a unique position as a champion for small and medium enterprises (SMEs), providing them with financial tools to thrive in Africa’s dynamic markets.
What Sets Moniepoint Apart?
- Market Leadership: Moniepoint processes over $2 billion in monthly transactions, making it a financial lifeline for millions of SMEs (Source: FT).
- Scaling Beyond Borders: Initially rooted in Nigeria, the company has since expanded into East and Southern Africa, demonstrating the scalability of SME-focused solutions.
- Comprehensive Offerings: By providing payments, credit, and business tools, Moniepoint tackles the critical challenges SMEs face, from liquidity constraints to operational inefficiencies.
Moniepoint’s success underscores the untapped potential within Africa’s 40 million+ SMEs, a market segment that is essential to the continent’s economic growth.
TymeBank: Redefining Banking in Africa
South Africa’s TymeBank has taken the digital-first banking model to new heights, becoming Africa’s ninth unicorn after a $250 million Series D funding round, led by Nubank (Source: TechCabal). TymeBank is not only a disruptor in traditional banking but also a pioneer in financial inclusion, reaching millions of underserved consumers with its affordable and accessible services.
The TymeBank Playbook:
- Rapid Growth: With over 9 million customers, TymeBank has demonstrated the immense demand for digital-only banking services across Southern Africa.
- Strategic Partnerships: Its collaborations with retail giants like Pick n Pay and Boxer have been instrumental in driving customer acquisition at scale.
- Financial Inclusion at Scale: By offering low-cost savings products, innovative credit options, and easy onboarding processes, TymeBank is reaching the segments of the population traditional banks often overlook.
Furthermore, TymeBank’s expansion in South East Asia, is also testament to the continent’s ability to produce tech-driven financial solutions that address more than just Africa’s market dynamics.
Why This Matters: Insights from the Ecosystem
The success of Moniepoint and TymeBank reflects broader trends that are shaping Africa’s tech ecosystem:
- FinTech at the Forefront: Financial technology continues to dominate venture funding in Africa, with over 50% of startup capital in 2024 directed to the sector. The rise of these unicorns highlights FinTech’s centrality in bridging gaps across access, affordability, and scalability.
- Global Investor Confidence: The participation of global investors like Google (Moniepoint) and Nubank in Brazil (TymeBank) demonstrates Africa’s ability to attract foreign capital, even amidst challenging macroeconomic conditions.
- Scalability is Key: Both companies highlight the importance of building solutions that not only address local challenges but also have the potential to scale across diverse geographies.
A Bullish 2025: The Next Chapter for African Unicorns
The achievements of Moniepoint and TymeBank are more than isolated success stories; they are signals of what’s to come. With a young, tech-savvy population, increasing mobile penetration, and a growing base of entrepreneurs tackling Africa’s unique challenges, the pipeline for future unicorns is stronger than ever.
At Baobab Network, we remain committed to partnering with the visionaries who are shaping this future. From Nairobi to Lagos, and from FinTech to HealthTech, we’re excited about the innovative potential of Africa’s founders and their ability to redefine global markets.
As we prepare for 2025, Moniepoint and TymeBank remind us of one simple truth: Africa is not just rising—it is leading.