Mastercard will invest $100 million in Airtel Africa’s mobile money operations valuing the business at $2.65 billion.
Mastercard said it will hold a minority stake in Airtel Mobile Commerce, in line with Airtel Africa’s plan to monetise the mobile money business by selling up to a 25 percent stake in the unit.
Airtel Africa’s mobile money earlier said the Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce. Airtel Africa’s mobile money will be looking for an IPO in four years.
Airtel will use the proceeds from the deal with Mastercard to reduce Group debt and invest in network and sales infrastructure in the operating countries.
Airtel’s mobile money services generated revenue of $110 million, and underlying EBITDA of $54 million at a margin of 48.7 percent in Q3. Growth in transaction value was 53 percent to $12.8 billion ($51 billion annualised) in Q3.