Airtel Africa, a London-listed telecom agency with a community spanning 14 African nations, has landed a $100 million funding from Mastercard for its cellular cash unit.
The funding sees the sale of a 25% stake in Airtel Cell Commerce (AMC BV) to the cardboard issuing large. Airtel Africa will proceed to carry a majority stake.
Mastercard says it has additionally prolonged its industrial agreements with Airtel Africa round card issuance, service provider acceptance, remittances, in addition to cost gateways and processing.
In 2019, Mastercard and Airtel Africa entered right into a partnership which noticed the latter’s 100 million subscribers acquire entry to Mastercard’s international community. The deal didn’t see any cash trade arms.
The most recent stake sale arrives lower than a month after The Rise Fund – TPG’s international influence investing platform – invested $200 million into the identical a part of Airtel Africa’s enterprise.
While TPG’s Rise Fund will personal 7.55% of Airtel Africa, Mastercard will personal a lesser 3.775.% stake.
Monetisation and an eventual itemizing
These multi-million capital injections take the cellular cash arm’s valuation to $2.65 billion.
Final month, Airtel Africa additionally bought 1,424 telecom towers in Madagascar and Malawi to Helios Towers for $119 million.
All these gross sales contribute in direction of the corporate’s intention “to monetise its cellular cash enterprise”. It needs to do that with minority investments as much as 25% of the issued share capital of AMC BV.
It would additionally use the brand new funds to scale back the corporate’s debt and put money into community and gross sales infrastructure. Inside the subsequent 4 years, Airtel Africa hopes to record the cellular cash enterprise as a separate entity.
The group is a subsidiary of Bharti Airtel, an Indian multinational telecom primarily based out of New Delhi.
In addition to cellular cash companies, the African subsidiary additionally provides cellular voice and information companies.
Based in 2010, Airtel Africa covers Kenya, Nigeria, Uganda, Madagascar, Zambia, Rwanda, Malawi, Chad, Niger, Gabon, Congo B, DRC, Seychelles, and Tanzania.
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