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Home Startup Fintech MFS Acquires Nigerian Fintech Startup Baxi in Africa’s Second-Largest Deal
Fintech - October 21, 2021

MFS Acquires Nigerian Fintech Startup Baxi in Africa’s Second-Largest Deal

MFS Africa aquires Baxi, Nigerian fintech startup for an undisclosed sum

Nigerian Fintech startup, Baxi is a one-stop-shop payment solution that aims to promote financial inclusion to as many people as possible in the most convenient way possible, while simultaneously providing a significant source of income for our agents.

The brand became incorporated in the year 2012. A product of Capricorn Digital Limited, its parent business, was founded by Degbola Abudu and Folu Majekodunmi. Baxi successfully has processed over USD 1 billion in transactions this year. The Nigerian Fintech startup has four product offerings with the purpose of becoming an online ecosystem of payment services.

The BaxiBos/PoS is an Android device that allows users to pay bills, withdraw money, and send money to Nigeria. The usage of the Baxi mobile application is in conjunction with the Baxi MPoS Device to provide PoS services to merchants and companies. 

The Baxi mobile app aids business proprietors to keep track of all transactions. This is a feature that sets it apart from other current PoS payment methods. BaxiPay is an internet service that allows you to make payments.

BaxiRIMS creation was created with SMEs and retail merchants in mind. The solution gives customers entire control over their processes. Ranging from purchase tracking to inventory management, and one can adjust it to meet the needs of the business owner.

MFS Africa Acquiring Capricorn Digital Limited

Recently, the Nigerian Fintech startup Baxi told Techcabal about a deal with Mobile Financial Solutions (MFS) Africa, which is subject to approval from the Central Bank of Nigeria (CBN). The sum is yet to get disclosed. But CEO, Degbola Abudu said it will be Nigeria’s second-highest Fintech acquisition after Stripe’s $200 million purchase of Paystack last year.

The 100% cash acquisition will encourage MFS to grow into Africa’s largest economy. This way its footprint won’t be limited by the country’s small number of mobile wallets. MFS Africa will also serve as the new name of Capricorn. However, the company’s flagship product, Baxi, will remain the same.

Baxi CEO, Degbola Abudu commented, “We’re thrilled to partner with the MFS Africa team to expand our service offering for individuals and SMEs. We believe that we’ve barely scratched the market’s potential. Only three per cent of Nigerian SMEs have access to credit products. By teaming up with MFS Africa, and with the firm support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth”.

MFS Africa was founded in 2009 by Dare Okoudjou, a Beninese native. The company is Africa’s largest Fintech interoperability hub. It connects banks, telecoms, and money transfer companies in over 35 countries through a single Application Program Interface (API).

“This deal is a pivotal step in our journey. By combining Baxi’s network of SMEs operating as agents and our pan-African network, we aim to take Nigeria’s SMEs to the rest of Africa and the world. Our expansion into Nigeria brings us one step closer in our mission of making borders matter less” said Dare Okoudjou, MFS Africa founder and CEO.

READ ALSO: Excessive Regulation of Fintech Startups in Nigeria and the Implication for Africa

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