Nigerian fintech company Interswitch poised to become Africa's first public startup unicorn.

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A New Era for African Tech: Interswitch Prepares for Historic Listing

Nigeria’s digital payments company, Interswitch, is poised to make history as the first billion-dollar tech Initial Public Offering (IPO) on a major exchange in Africa. Sources close to the company confirm that Interswitch will list on the London Stock Exchange (LSE) in 2016, marking a significant milestone for the continent’s growing tech sector.

A Brief Overview of Interswitch

Founded in 2002, Interswitch is a leading fintech firm majority-owned by private equity group Helios Investment Partners. The company provides critical digital finance infrastructure to Nigeria and other African countries, processing the bulk of electronic bank, government, and corporate financial transactions on the continent.

The Verve Chip and PIN Card: A Success Story

Interswitch’s Verve chip and PIN card is used by 32 million consumers in Nigeria, while its Quickteller digital payment app processed $2.4 billion in transactions. These numbers underscore the company’s significant market share in Nigeria’s growing electronic payments landscape.

IPO Timing and Valuation: A Billion-Dollar Listing

Though Interswitch CEO Mitchell Elegbe would not confirm a 2016 IPO, two sources revealed that the company has selected its investment bankers and is likely to list on the LSE between Q2 and Q4 of this year at a valuation of around $1 billion – roughly two times revenues. This estimate is consistent with feedback from other industry insiders.

African Tech: A Growing Sector

African tech is rapidly emerging as a significant player in the global market, driven by growth and reform in core economies. Countries like Nigeria, Kenya, and South Africa are witnessing an explosion of innovation, with startup ecosystems thriving in major cities across the continent.

EchoVC’s Omoigui on Interswitch’s Listing: A Catalyst for African Tech

EchoVC’s Managing Partner, Omosalewa Omoigui, sees Interswitch’s IPO as a game-changer for African tech. "This is a demonstration of African tech companies’ ability to generate significant revenue," she said. "The market will take African tech much more seriously once we have a unicorn in our midst."

What This Means for Venture Capitalists and Startups

Interswitch’s listing on the LSE will send a strong signal to venture capitalists that Africa is an attractive investment destination. With this validation, startups across the continent can expect increased attention from investors, paving the way for more innovative companies to emerge.

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