African fintech giant Flutterwave has announced it’s preparing for an initial public offering on the Nasdaq stock exchange this is following regulatory hurdles in key markets like Kenya.
Kenya’s high court froze Flutterwave’s bank accounts under anti-money laundering rules in July and the central bank said it isn’t licensed to operate payments services in the country. The company has for months been struggling with allegations in the media and lawsuits — including claims of refusing former employees stock rights, harassment and bullying — casting doubts over its IPO plans.
Flutterwave, valued at more than $ 3 billion (R50 billion) and backed by B Capital Group and TPG, has tapped talent from American Express’s Kabbage unit to bolster corporate governance ahead of the planned IPO, Bhambani said, without giving a timeline for the share sale.
According to Bloomberg, San Francisco- and Lagos-based company will use the funds to expand operations in its existing markets and enter new ones in Africa, according to chief financial officer Oneal Bhambani, who along with three others joined the company in June from American Express.
Flutterwave has continuously denied accusations of financial misconduct, including claims of money laundering in Kenya and irregularities related to stock options, and said it has taken action against those found culpable for any form of harassment in the company.