In a recent development, Flutterwave, Africa’s most valuable startup, announced the appointment of Mitesh Popat as its new chief financial officer. The company, with a valuation of $3 billion following a Series D funding round in 2022, brought on Popat after the departure of Oneal Bhambani, who resigned ten months ago for personal reasons.
Bhambani joined Flutterwave during a challenging period when the fintech was facing allegations of employee mistreatment and financial misconduct. During his tenure, he successfully resolved a money laundering case in Kenya, where over $50 million of Flutterwave’s funds were frozen. Bhambani also spearheaded the company’s expansion into Rwanda as a licensed remittance provider and initiated the licensing process in Kenya. Under his leadership, Flutterwave outlined plans to invest $50 million in enhancing its presence in key African markets.
The responsibility for overseeing Flutterwave’s expansion and growth now falls on Popat. His appointment, along with the recruitment of six new executives in finance, risk, legal, and compliance, is expected to allay concerns over leadership and IPO plans raised by Bhambani’s departure.
Flutterwave’s CEO, Olugbenga Agboola, expressed confidence in Popat’s ability to drive sustainable growth, particularly with the company’s recent license acquisitions and expansion into additional markets. Agboola emphasized Flutterwave’s commitment to bridging Africa with the global economy.
In a recent strategic move, Flutterwave underwent a significant restructuring, including a 3% reduction in its workforce and the closure of its consumer finance app, Barter. The company intends to focus on its core products, Flutterwave For Business (FFB) and Send App, which cater to enterprise solutions and remittances respectively.
Agboola outlined Flutterwave’s vision to establish itself as the leading payment infrastructure provider in Africa, emphasizing the importance of licenses, reach, payment diversity, customer base, and revenue growth. The company aims to emulate the success of Adyen on the continent.
The conversation with Agboola shed light on Flutterwave’s strategic direction, addressing challenges such as fraud amid its rapid expansion. The interview highlighted key market strategies, recent decisions, and the fintech’s focus on enhancing customer experience.
In discussing Flutterwave’s approach to licenses and market prioritization:
Flutterwave aims to provide enhanced value to customers by directly owning its infrastructure in key markets. The company views holding licenses as vital to ensuring operational reliability and customer satisfaction. Market selection is driven by customer priorities, with an emphasis on delivering a robust and reliable payment infrastructure.
Regarding Flutterwave’s targeted markets:
Important markets for Flutterwave include Egypt, Morocco, Nigeria, Ghana, Rwanda, Tanzania, Uganda, Kenya, Cameroon, Senegal, Cote d’Ivoire, and DR Congo, reflecting the company’s strategic regional focus.
On the decision to prioritize enterprise solutions and remittances:
Flutterwave rationalized the shift in focus, discontinuing Barter to align more closely with customer demands for enterprise payments and international remittances. The company’s omnichannel approach ensures a flexible and customer-centric service delivery model.
Regarding anticipated revenue trends in enterprise and remittance segments:
Flutterwave anticipates sustained growth in both enterprise and remittance segments, with a focus on maintaining the current revenue split. The company remains committed to expanding its payment infrastructure and enterprise services across Africa.
Regarding Flutterwave’s efforts to combat fraud:
As a financial infrastructure provider, Flutterwave adopts proactive measures to prevent fraud, including collaboration with industry stakeholders and law enforcement agencies. The company is committed to enhancing cybersecurity and safeguarding customer interests through collaborative initiatives.
