Flutterwave is an American fintech company that provides a payment infrastructure for global merchants and payment service providers across the continent.[1]
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Company type | Private |
---|---|
Industry | FinTech |
Founded | 2016 |
Key people | Olugbenga Agboola (CEO), Iyinoluwa Aboyeji |
Website | flutterwave |
History
editThe company was founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola, and Adeleke Adekoya and is headquartered in San Francisco, California with current operations in the U.S., Canada, Nigeria, Kenya, Uganda, Ghana, South Africa, and 29 other African countries.[2][3][4]
In 2021, Flutterwave raised a US$170 million Series C funding round.[5] At the time, this was the largest amount ever secured by an African tech startup and gave it a valuation of over US$1 billion,[6] making Flutterwave a unicorn.[2] Investors in Flutterwave include Y-Combinator, Visa Ventures, Mastercard, Avenir Growth Capital, and Tiger Global Management.[7] Flutterwave raised a US$250 million Series D funding round at over US$3 billion valuation in 2022 as well.[8]
In December 2021, Flutterwave launched Send App,[9] an African-focused remittances service that facilitates instant money transfers, and appointed Wizkid as its global ambassador to further push the company's brand among the Africans in the diaspora.[10][11] Send App is now available in 29 states in the U.S. and is expected to expand to all 50 states.[12]
In January 2022, Flutterwave partnered with AfroSport Network to broadcast the 2021 Africa Cup of Nations free-to-air from 9 January 2022 to 6 February 2022.[13]
In 2024, Flutterwave announce several developments. In April, the company announced plans for an Initial public offering.[14] That same month, Flutterwave's CEO, Olugbenga Agboola, was named vice chair of the U.S. Chamber of Commerce's US-Africa Business Center board of directors.[15] In June, Flutterwave partnered with Nigeria’s Economic and Financial Crimes Commission (EFCC) to establish and lead a state-of-the-art Cybercrime Research Center.[16] Following this, in July, Flutterwave joined the prestigious Milken Institute’s Africa Leaders Business Council.[17] In August, Flutterwave expanded its digital payment services with a license in Ghana, marking the 34th African country where it holds a license.[4]
Awards and recognitions
editFlutterwave has been recognized as one of the most innovative fintech companies globally, receiving numerous awards and accolades for its contributions to digital payment solutions, including ‘Fintech of the Year’ at the African Banker Awards in 2024.[18] In March 2024, Flutterwave was named one of the most innovative companies in the Europe, Middle East, and Asia category in the 2024 Fast Company’s Most Innovative Companies list.[19] In May 2024, Flutterwave was named to the 12th annual CNBC Disruptor 50 list, highlighting its rapid growth and successful funding rounds from prominent venture capital firms such as Tiger Global Management and Salesforce Ventures.[20]
CNBC and Statista included Flutterwave in the top 250 fintech companies in the world for the first time in 2024.[21]
Digital store
editAt the peak of the COVID-19 pandemic, Flutterwave built a digital store to help medium and small-scale businesses that were badly impacted by the global lockdown to display their products for market online. Over 20,000 businesses enrolled on the store for free through a campaign called "keeping the lights on".[22][23]
Switching license
editOn September 1, 2022, Bloomberg reported that the Central Bank of Nigeria had granted Flutterwave the country's highest payment processing license, which allows it to process transactions between banks and cards without intermediaries. The switching processing license grants Flutterwave autonomy across the payments ecosystem value chain.[24] This includes processing funds transfers between banks and fintechs, as well as participating in agency banking and other payment services.[25][26][27]
Controversy
editKenya licensing
editKenyan central bank Governor Patrick Njoroge disclosed on July 28, 2022, after the Monetary Policy Committee meeting, that Flutterwave and Chipper have not been granted a licence to operate in the country. The clarification of Patrick followed an initial ruling by a Kenyan High Court on July 6, 2022, which froze all assets and accounts of Flutterwave in the country.[28]
Flutterwave, in an official response, disclosed that it submitted applications for licensing to the central bank of Kenya in 2019 but has yet to be granted one.[29][30][31]
In February 2023, a Kenyan court released $51.9 million belonging to Flutterwave after the Asset Recovery Agency of Kenya withdrew its case against the startup.[32]
Money laundering
editIn July 2022, a Kenyan High Court froze accounts held by Flutterwave holding over 6.2 billion Kenyan shilling based upon allegations that the funds were the proceeds of credit card fraud and money laundering after a request from Kenya's Assets Recovery Agency. [33][34][35] The company has denied accusations of financial misconduct.[35]
Kenya's Assets Recovery Agency withdrew the allegation of money laundering and fraud against Flutterwave. In a court order cited by Bloomberg, the agency absolved Flutterwave of any infringement.[36]
Harassment
editFlutterwave has been subject to multiple lawsuits and allegations for denying former employees stock rights as well as having a culture of bullying and harassment.[35] In response, the company stated it has taken action against individuals within the company responsible for harassment.[35]
Fraud
editOn March 3, 2023, a Twitter user tweeted about a hack at Flutterwave. Two days later, on March 5, Flutterwave denied the report of a hack,[37] stating that customers did not lose any funds. However, several sources told TechCabal that they lost funds and their accounts were frozen. The court documents seen by TechCabal included a petition by Flutterwave's legal counsel to the police, dated February 20, 2023.[38] On February 8, 2024, TechCabal further published an exclusive report into how Flutterwave has been defrauded up to the tune of $24m through a court order secured to obtain return of such funds from over 6,000 Nigerian bank customers.[39]
See also
editReferences
edit- ^ madenigeria.com[dead link]
- ^ a b Jackson, Tom (10 March 2021). "Nigerian payments startup Flutterwave achieves "unicorn" status after $170m funding round". Disrupt Africa. Retrieved 13 March 2021.
- ^ "Flutterwave Expands Remittance Capabilities in the US, Canada, Egypt and Rebrands $end to Send App by Flutterwave". The Flutterwave Blog. Flutterwave. Retrieved 2024-08-27.
- ^ a b Duruson, Sylvia (2024-08-05). "Flutterwave Expands Digital Payment Services in Ghana with New License". Tech In Africa. Retrieved 2024-08-27.
- ^ "African payments company Flutterwave raises $170M, now valued at over $1B". Tech Crunch. Retrieved 13 March 2021.
- ^ Princewill, Nimi (11 March 2021). "Nigerian startup Flutterwave secures $170 million in capital injections from investors, now valued at over $1 billion". CNN. Retrieved 13 March 2021.
- ^ "Dealroom: About Flutterwave". Dealroom. Retrieved 13 March 2021.
- ^ "Flutterwave secures $250m Series D with valuation at over $3bn". TechCabal. 2022-02-16. Retrieved 2022-02-21.
- ^ "Flutterwave Send Website".
- ^ "Flutterwave Picks Wizkid as Global Brand Ambassador, Launches Send". investorsking.com.
- ^ "Flutterwave Appoints Oluwabankole Falade as Chief Regulatory and Government Relations Officer". TechMoran.
- ^ "Flutterwave Secures 13 New Money Transmission Licenses in the U.S. and Services 29 States with its Send App Remittance Solution for Consumers and Enterprises" (Press release). Flutterwave. PR Newswire. Retrieved 2024-08-27.
- ^ "Flutterwave Sponsors AFCON 2021 Broadcast On Afrosport TV". Complete Sports. 2022-01-06. Retrieved 2022-02-04.
- ^ "Flutterwave Prepares for African Fintech IPO". Fintech Industry Examiner. 2024-04-24. Retrieved 2024-04-24.
- ^ Staff Writer (2024-04-26). "Flutterwave founder named vice chair of US-Africa Business Center's board". ITWeb Africa. Retrieved 2024-08-27.
- ^ "Flutterwave Partners EFCC to Establish Consortium Led Cybercrime Research Center". The Flutterwave Blog. Flutterwave. Retrieved 2024-08-27.
- ^ "Milken Institute Scales Up Engagement with Africa Through New Business Council". Milken Institute. 2024-07-23. Retrieved 2024-08-27.
- ^ "Flutterwave Recognized as 'Fintech of the Year' at The African Banker Awards". FINTECH MAGAZINE AFRICA. 2024-06-01. Retrieved 2024-08-27.
- ^ "Flutterwave Is one of Fast Company's Most Innovative Companies in Europe, the Middle East, and Africa for 2024". Fast Company.
- ^ CNBC.com Staff (2024-05-14). "These are the 2024 CNBC Disruptor 50 companies: See the full list of startups riding the AI wave". CNBC. Retrieved 2024-08-27.
- ^ "Flutterwave Named Among World's Top 250 Fintechs by CNBC and Statista". fintecbuzz.com. 2024-07-18. Retrieved 2024-08-27.
- ^ "How Flutterwave is helping SMEs in Africa 'keep the lights on' during the pandemic". CNN. 2021-04-26. Retrieved 2022-09-09.
- ^ "Flutterwave Powering retailers". Time. 2020-05-28. Retrieved 2022-09-09.
- ^ "Flutterwave Obtains Key License in Nigeria Ahead of Planned IPO". Bloomberg. 2022-09-01. Retrieved 2022-09-01.
- ^ "CBN Grants Flutterwave Switching and Processing Licence". thisdaylive.com. Retrieved 2022-10-09.
- ^ Quadri, Sultan (2022-09-01). "Flutterwave secures payment license and plans IPO amidst regulatory hurdles". TechCabal. Retrieved 2022-10-09.
- ^ CNBC.com staff. "21. Flutterwave". CNBC. Retrieved 2022-12-09.
- ^ "Flutterwave, Chipper Cash not licensed to operate in Kenya — Central Bank". Premium Times. 2022-07-29. Retrieved 2022-08-12.
- ^ "Flutterwave Says It's Awaiting Kenya License After Bank Snub". Bloomberg. 2022-07-28. Retrieved 2022-08-12.
- ^ "We submitted application for licence to operate in Kenya since 2019, Flutterwave reacts to CBK allegation". Vanguard Newspaper. 2022-07-30. Retrieved 2022-08-12.
- ^ "Nigeria's Flutterwave faces Kenya fraud allegations". Rest of World. 2022-07-25. Retrieved 2022-08-16.
- ^ "Kenyan court releases frozen Flutterwave funds". 2023-02-28. Retrieved 2023-03-10.
- ^ Azeez, Wasilat (July 7, 2022). "Flutterwave denies money laundering allegation as Kenyan court freezes bank accounts". TheCable. Retrieved 3 September 2022.
- ^ "Flutterwave's accounts frozen in Kenya over money laundering claims". Reuters. July 7, 2022. Retrieved 3 September 2022.
- ^ a b c d Prinsloo, Loni (August 11, 2022). "Africa's $3 Billion Startup Battles Allegations as It Plans IPO". Bloomberg. Retrieved 3 September 2022.
- ^ "Kenya Withdraws Financial Impropriety Case Against Flutterwave". Bloomberg.
- ^ "Hackers steal ₦2.9 billion from Flutterwave accounts, motion granted to freeze accounts connected with stolen funds". TechPoint Africa. 2023-03-05.
- ^ Oladunmade, Muktar (2023-03-10). "Hundreds of accounts frozen in relation to alleged Flutterwave hack". TechCabal. Retrieved 2023-03-10.
- ^ Oladunmade, Muktar (2024-02-08). "Flutterwave gets court order to recover $24 million lost to unauthorized POS transactions". TechCabal. Retrieved 2024-02-12.