Airtel Africa gets $200 million investment from Rise Fund at a valuation of $2.65 billion – to list its mobile money unit in four years

• Airtel Africa has raised the investment from the Rise Fund, which is the alternative investment firm of American PE giant TPG.
• The investment comes in mainly for Airtel Mobile Commerce BV, which is the mobile money operations wing.
• The company now aims to raise more funds before heading for an eventual listing in four years.

Sunil Mittal-owned Airtel Africa, which offers telecommunications and mobile money services, has raised $200 million investment from the Rise Fund, which is the alternative investment firm of American PE giant TPG. Interestingly, TPG has invested in Airtel’s India rival Reliance Jio Platforms.

The investment comes in mainly for Airtel Mobile Commerce BV, which is the mobile money operations subsidiary of Airtel Africa. The company said, in a stock exchange filing, that it “is now intended to own and operate the mobile money businesses across all of Airtel Africa's fourteen operating countries.”

“The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers,” said the company.

The mobile money business is now valued at $2.65 billion. Operating under the brand name ‘Airtel Money,’ it offers financial services from wallet, merchant payments, transfers, loans and virtual credit cards and more.

The company now aims to raise more funds before heading for an eventual listing in four years. “The group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV,” said the statement.

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