“The investment makes Interswitch one of the most valuable African fintech businesses with a valuation of $1 billion,” Interswitch said in a release to TechCrunch.
The Visa investment could create the first of two market distinctions for Interswitch — as it shouldn’t change the Lagos-based company’s plans to go public.
“An IPO is still very much in the cards; likely sometime in the first half of 2020,” a source with knowledge of the situation told TechCrunch on background.
Interswitch did not reveal the amount of Visa’s investment and would not confirm Sky News reporting Monday that pegged it at $200 million for 20%.
Whatever the exact number, Interswitch’s confirmation of a $1 billion valuation marks another milestone in African tech.
Only one VC-backed startup, turned later-stage company on the continent — e-commerce venture Jumia — has generated enough revenue and capital to achieve a ten-figure valuation.
For the near to medium-term, Interswitch could stand as Africa’s sole tech-unicorn, as Jumia’s volatile share-price and declining market-cap since an April IPO have dropped the company’s worth below $1 billion (for now).