OPay Taps Citigroup, Deutsche Bank, JPMorgan for Potential $4 Billion US IPO

Key facts

• OPay is working with Citigroup, Deutsche Bank, and JPMorgan Chase for a potential US IPO.
• The company is targeting a valuation of around $4 billion.
• OPay raised $400 million in 2021 at a $2 billion valuation.
• OPay serves more than 40 million users.
• Backers include SoftBank Vision Fund and Sequoia Capital.
• Nigeria has produced fintech unicorns Flutterwave, Moniepoint, and Interswitch.
• McKinsey estimates African fintech revenues could reach $47 billion by 2028.

A Nigerian Fintech Giant Prepares to Go Public

OPay, the SoftBank Group Corp.-backed payments platform, has enlisted Citigroup Inc., Deutsche Bank AG, and JPMorgan Chase & Co. to advise on a potential initial public offering in the United States, according to people familiar with the matter. The company is seeking a valuation of around $4 billion and may list later this year, though details remain private. The move positions OPay at the forefront of a wave of African fintech companies eyeing public markets. A successful IPO would not only be a milestone for the company but could also reshape global investor confidence in the continent's digital economy.

From $2 Billion to $4 Billion: OPay's Rapid Growth

Founded by Yahui Zhou, OPay raised $400 million in 2021 at a $2 billion valuation. It now serves more than 40 million users, a testament to its rapid expansion in Nigeria's underserved financial market. The company counts SoftBank Vision Fund and Sequoia Capital among its backers. OPay's growth reflects the broader rise of Nigerian fintech, which has produced unicorns such as Flutterwave, Moniepoint, and Interswitch. These platforms have thrived by solving persistent challenges like failed transactions and limited banking access.

Nigeria's Fintech Ecosystem Gains Global Attention

OPay's IPO effort underscores Nigeria's growing reputation as a fintech innovation hub. The country has emerged as a breeding ground for startups that address Africa's financial infrastructure gaps, attracting significant venture capital. With McKinsey & Company estimating that African fintech revenues could reach $47 billion by 2028, the stakes are high. A successful listing by OPay could encourage more global capital to flow into the continent's digital economy, offering a clearer path to liquidity for venture-backed startups.

A Potential Turning Point for African Tech

If executed, OPay's IPO would signal that Africa's fintech ecosystem is maturing, moving from rapid growth and private funding into a new phase where public markets play a defining role. The listing could serve as a bellwether for other African startups considering similar moves. However, the timing and valuation remain subject to market conditions. OPay's ability to achieve its $4 billion target will depend on investor appetite for emerging-market tech stocks, which has been volatile in recent years.

What Comes Next for OPay and Its Investors

OPay has not publicly confirmed the IPO timeline, but preparations are underway. The involvement of three major global banks suggests a serious commitment to the listing process. For SoftBank and Sequoia, a successful IPO would provide a lucrative exit opportunity and validate their bets on African fintech. For the broader market, OPay's performance could set the tone for future listings from the continent, potentially unlocking a new wave of capital for startups solving Africa's most pressing challenges.

The bottom line

• OPay is working with Citigroup, Deutsche Bank, and JPMorgan for a potential US IPO targeting a $4 billion valuation.
• The company serves over 40 million users and raised $400 million in 2021 at a $2 billion valuation.
• Backed by SoftBank and Sequoia, OPay is part of Nigeria's thriving fintech ecosystem that includes Flutterwave and Moniepoint.
• A successful IPO could boost investor confidence in African tech and provide a liquidity pathway for venture-backed startups.
• McKinsey projects African fintech revenues could reach $47 billion by 2028, underscoring the market's potential.
• The listing timeline remains unconfirmed, but preparations are underway with major bank involvement.