Flutterwave: Difference between revisions

Revision as of 16:01, 3 September 2024

Revision as of 21:44, 3 September 2024

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The company was founded in 2016 by [[Iyinoluwa Aboyeji]], [[Olugbenga Agboola]], and Adeleke Adekoya and is headquartered in [[San Francisco]], [[California]] with current operations in the U.S., Canada, [[Nigeria]], [[Kenya]], [[Uganda]], [[Ghana]], [[South Africa]], and 29 other African countries.<ref name=":0">{{Cite web|first=Tom|last=Jackson|date=10 March 2021|title=Nigerian payments startup Flutterwave achieves "unicorn" status after $170m funding round|url=https://disrupt-africa.com/2021/03/10/nigerian-payments-startup-flutterwave-achieves-unicorn-status-after-170m-funding-round/|access-date=13 March 2021|website=Disrupt Africa}}</ref><ref>{{Cite web |title=Flutterwave Expands Remittance Capabilities in the US, Canada, Egypt and Rebrands $end to Send App by Flutterwave |work=The Flutterwave Blog |url=https://flutterwave.com/gb/blog/flutterwave-expands-remittance-capabilities-in-the-us-canada-egypt-and-rebrands-end-to-send-app-by-flutterwave |access-date=2024-08-27 |publisher=Flutterwave |language=en}}</ref><ref name=":1" />

In 2021, Flutterwave raised a US$170 million [[Series C]] funding round.<ref>{{Cite web|title=African payments company Flutterwave raises $170M, now valued at over $1B|url=https://techcrunch.com/2021/03/09/african-payments-company-flutterwave-raises-170m-now-valued-at-over-1b/|access-date=13 March 2021|website=Tech Crunch|date=9 March 2021 }}</ref> At the time, this was the largest amount ever secured by an African tech startup and gave it a valuation of over US$1 billion,<ref>{{Cite web|last=Princewill|first=Nimi|date=11 March 2021|title=Nigerian startup Flutterwave secures $170 million in capital injections from investors, now valued at over $1 billion|url=https://edition.cnn.com/2021/03/10/africa/startup-flutterwave-funding-intl/index.html|access-date=13 March 2021|website=[[CNN]]}}</ref> making Flutterwave a [[Unicorn (finance)|unicorn]].<ref name=":0" /> Investors in Flutterwave include [[Y Combinator|Y-Combinator]], [[Visa Inc.|Visa Ventures]], [[Mastercard]], Avenir Growth Capital, and [[Tiger Global Management]].<ref>{{Cite web|title=Dealroom: About Flutterwave|url=https://app.dealroom.co/companies/flutterwave|access-date=13 March 2021|website=[[Dealroom]]}}</ref> Flutterwave raised a US$250 million Series D funding round at over US$3 billion valuation in 2022 as well.<ref>{{Cite web|date=2022-02-16|title=Flutterwave secures $250m Series D with valuation at over $3bn|url=https://techcabal.com/2022/02/16/flutterwave-secures-250m-series-d/|access-date=2022-02-21|website=TechCabal|language=en-US}}</ref>

In December 2021, Flutterwave launched Send App,<ref>{{Cite web|title=Flutterwave Send Website|url=https://send.flutterwave.com}}</ref> an African-focused remittances service that facilitates instant money transfers, and appointed [[Wizkid]] as its global ambassador to further push the company's brand among the Africans in the diaspora.<ref>{{Cite web|title=Flutterwave Picks Wizkid as Global Brand Ambassador, Launches Send|url=https://investorsking.com/2021/12/18/flutterwave-picks-wizkid-as-global-brand-ambassador-launches-send |website=investorsking.com|date=18 December 2021 }}</ref><ref>{{Cite web|url=https://techmoran.com/2021/07/14/flutterwave-appoints-oluwabankole-falade-as-chief-regulatory-and-government-relations-officer/|title = Flutterwave Appoints Oluwabankole Falade as Chief Regulatory and Government Relations Officer |website=TechMoran}}</ref> Send App is now available in 29 states in the U.S. and is expected to expand to all 50 states.<ref>{{Cite press release |publisher=Flutterwave |title=Flutterwave Secures 13 New Money Transmission Licenses in the U.S. and Services 29 States with its Send App Remittance Solution for Consumers and Enterprises |url=https://www.prnewswire.com/news-releases/flutterwave-secures-13-new-money-transmission-licenses-in-the-us-and-services-29-states-with-its-send-app-remittance-solution-for-consumers-and-enterprises-302008908.html |access-date=2024-08-27 |agency=PR Newswire |language=en}}</ref>

In January 2022, Flutterwave partnered with AfroSport Network to broadcast the 2021 [[Africa Cup of Nations]] free-to-air from 9 January 2022 to 6 February 2022.<ref>{{Cite web|date=2022-01-06|title=Flutterwave Sponsors AFCON 2021 Broadcast On Afrosport TV |url=https://www.completesports.com/flutterwave-sponsors-afcon-2021-broadcast-on-afrosport-tv/|access-date=2022-02-04|website=Complete Sports|language=en-US}}</ref>

In 2024, Flutterwave announce several developments. In April, the company announced plans for an [[Initial public offering]].<ref>{{Cite web|date=2024-04-24|title=Flutterwave Prepares for African Fintech IPO|url=https://fintech.industryexaminer.com/flutterwave-african-fintech-ipo/|access-date=2024-04-24|website=Fintech Industry Examiner|language=en-US}}</ref> That same month, Flutterwave's CEO, Olugbenga Agboola, was named vice chair of the U.S. Chamber of Commerce's US-Africa Business Center board of directors.<ref>{{Cite web |author=Staff Writer |date=2024-04-26 |title=Flutterwave founder named vice chair of US-Africa Business Center’sCenter's board |url=https://itweb.africa/content/WnxpE74Y152MV8XL |access-date=2024-08-27 |website=ITWeb Africa |language=en-ZA}}</ref> In June, Flutterwave partnered with Nigeria’s Economic and Financial Crimes Commission (EFCC) to establish and lead a state-of-the-art Cybercrime Research Center.<ref>{{Cite web |title=Flutterwave Partners EFCC to Establish Consortium Led Cybercrime Research Center |work=The Flutterwave Blog |url=https://flutterwave.com/us/blog/flutterwave-partners-efcc-to-establish-consortium-led-cybercrime-research-center |access-date=2024-08-27 |publisher=Flutterwave |language=en}}</ref> Following this, in July, Flutterwave joined the prestigious Milken Institute’s Africa Leaders Business Council.<ref>{{Cite web |date=2024-07-23 |title=Milken Institute Scales Up Engagement with Africa Through New Business Council |publisher=Milken Institute |url=https://milkeninstitute.org/content-hub/news-releases/milken-institute-scales-engagement-africa-through-new-business-council |access-date=2024-08-27 |language=en}}</ref> In August, Flutterwave expanded its digital payment services with a license in Ghana, marking the 34th African country where it holds a license.<ref name=":1">{{Cite web |last=Duruson |first=Sylvia |date=2024-08-05 |title=Flutterwave Expands Digital Payment Services in Ghana with New License |url=https://www.techinafrica.com/flutterwave-expands-digital-payment-services-in-ghana-with-new-license/ |access-date=2024-08-27 |website=Tech In Africa |language=en-US}}</ref>

== Awards and recognitions ==

Flutterwave has been recognized as one of the most innovative fintech companies globally, receiving numerous awards and accolades for its contributions to digital payment solutions, including ‘Fintech of the Year’ at the African Banker Awards in 2024.<ref>{{Cite web |date=2024-06-01 |title=Flutterwave Recognized as ‘Fintech'Fintech of the Year’Year' at The African Banker Awards |work=FINTECH MAGAZINE AFRICA |url=https://fintechmagazine.africa/2024/06/01/flutterwave-recognized-as-fintech-of-the-year-at-the-african-banker-awards/ |access-date=2024-08-27 |language=en-US}}</ref> In March 2024, Flutterwave was named one of the most innovative companies in the Europe, Middle East, and Asia category in the 2024 Fast Company’s Most Innovative Companies list.<ref>{{Cite web |title=Flutterwave Is one of Fast Company’sCompany's Most Innovative Companies in Europe, the Middle East, and Africa for 2024 |url=https://www.fastcompany.com/91037534/flutterwave-most-innovative-companies-2024 |work=Fast Company}}</ref> In May 2024, Flutterwave was named to the 12th annual CNBC Disruptor 50 list, highlighting its rapid growth and successful funding rounds from prominent venture capital firms such as Tiger Global Management and Salesforce Ventures.<ref>{{Cite web |author=CNBC.com Staff |date=2024-05-14 |title=These are the 2024 CNBC Disruptor 50 companies: See the full list of startups riding the AI wave |url=https://www.cnbc.com/2024/05/14/these-are-the-2024-cnbc-disruptor-50-companies.html |access-date=2024-08-27 |website=CNBC |language=en}}</ref>

CNBC and Statista included Flutterwave in the top 250 fintech companies in the world for the first time in 2024.<ref>{{Cite web |date=2024-07-18 |title=Flutterwave Named Among World's Top 250 Fintechs by CNBC and Statista |url=https://fintecbuzz.com/flutterwave-named-among-worlds-top-250-fintechs-by-cnbc-and-statista/ |website=fintecbuzz.com |access-date=2024-08-27 |language=en-US}}</ref>

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==Switching license==

On September 1, 2022, [[Bloomberg News|Bloomberg]] reported that the [[Central Bank of Nigeria]] had granted Flutterwave the country's highest payment processing license, which allows it to process transactions between banks and cards without intermediaries. The switching processing license grants Flutterwave autonomy across the payments ecosystem value chain.<ref>{{Cite web |date=2022-09-01 |title=Flutterwave Obtains Key License in Nigeria Ahead of Planned IPO |url=https://www.bloomberg.com/news/articles/2022-09-01/flutterwave-obtains-key-license-in-nigeria-ahead-of-planned-ipo |access-date=2022-09-01 |website=Bloomberg |language=en}}</ref> This includes processing funds transfers between banks and fintechs, as well as participating in agency banking and other payment services.<ref>{{Cite web |title=CBN Grants Flutterwave Switching and Processing Licence |url=https://www.thisdaylive.com/index.php/2022/09/05/cbn-grants-flutterwave-switching-and-processing-licence/ |access-date=2022-10-09 |website=thisdaylive.com}}</ref><ref>{{Cite web |last=Quadri |first=Sultan |date=2022-09-01 |title=Flutterwave secures payment license and plans IPO amidst regulatory hurdles |url=https://techcabal.com/2022/09/01/flutterwave-receives-new-payment-license-and-plans-ipo-amidst-regulatory-challenges/ |access-date=2022-10-09 |website=TechCabal |language=en-US}}</ref><ref>{{Cite web |author=CNBC.com staff |title=21. Flutterwave |url=https://www.cnbc.com/2021/05/25/flutterwave-disruptor-50.html |access-date=2022-12-09 |website=CNBC |date=25 May 2021 |language=en}}</ref>

== Controversy ==

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In July 2022, a Kenyan High Court froze accounts held by Flutterwave containing over 6.2 billion [[Kenyan shilling]], following allegations by Kenya's Assets Recovery Agency (ARA) that the funds were linked to money laundering and credit card fraud. The Central Bank of Kenya (CBK) also disclosed that Flutterwave was not licensed to operate in the country.<ref name="TheCable ML">{{cite web |last=Azeez |first=Wasilat |date=July 7, 2022 |title=Flutterwave denies money laundering allegation as Kenyan court freezes bank accounts |url=https://www.thecable.ng/flutterwave-denies-money-laundering-allegation-as-kenyan-court-freezes-bank-accounts/amp |access-date=3 September 2022 |work=[[TheCable]] |language=English}}</ref><ref name="Reuters ML">{{cite web |date=July 7, 2022 |title=Flutterwave's accounts frozen in Kenya over money laundering claims |url=https://www.reuters.com/technology/flutterwaves-accounts-frozen-kenya-over-money-laundering-claims-2022-07-07/ |access-date=3 September 2022 |publisher=[[Reuters]]}}</ref><ref name="Bloomberg 1">{{cite web |last=Prinsloo |first=Loni |date=August 11, 2022 |title=Africa's $3 Billion Startup Battles Allegations as It Plans IPO |url=https://www.bloomberg.com/news/articles/2022-08-11/biggest-africa-startup-battles-multiple-allegations-in-ipo-runup |access-date=3 September 2022 |work=[[Bloomberg News|Bloomberg]]}}</ref> Flutterwave denied accusations of financial misconduct.<ref name="Bloomberg 1" />

In February 2023, the ARA withdrew its case against Flutterwave, and a Kenyan court released $51.9 million that had been frozen. The court documents revealed that the agency absolved Flutterwave of any wrongdoing, effectively clearing the company of all allegations.<ref>{{Cite web |date=2023-02-28 |title=Kenyan court releases frozen Flutterwave funds |url=https://techpoint.africa/2023/02/28/kenyan-court-releases-frozen-flutterwave-funds/ |access-date=2023-03-10 |language=en-US}}</ref><ref>{{Cite web |url=https://techpoint.africa/2023/11/09/flutterwave-cleared-in-kenya/ |access-date=2024-09-03 |website=techpoint.africa |title=Flutterwave cleared in Kenya as anti-money laundering agency drops its final lawsuit against the fintech |date=9 November 2023 }}</ref><ref>{{Cite web |url=https://techpoint.africa/2023/02/28/kenyan-court-releases-frozen-flutterwave-funds/ |access-date=2024-09-03 |website=techpoint.africa |title=Kenyan court releases frozen Flutterwave funds |date=28 February 2023 }}</ref>

In response to the licensing issue, Flutterwave disclosed that it submitted applications for licensing to the CBK as early as 2019, but these were still pending approval.<ref>{{Cite web |date=2022-07-28 |title=Flutterwave Says It's Awaiting Kenya License After Bank Snub |url=https://www.bloomberg.com/news/articles/2022-07-28/kenya-says-flutterwave-and-chipper-cash-not-licensed-operators#xj4y7vzkg |access-date=2022-08-12 |website=Bloomberg|language=en}}</ref><ref>{{Cite web |date=2022-07-30 |title=We submitted application for licence to operate in Kenya since 2019, Flutterwave reacts to CBK allegation |url=https://www.vanguardngr.com/2022/07/we-submitted-application-for-licence-to-operate-in-kenya-since-2019-flutterwave-reacts-to-cbk-allegation/ |access-date=2022-08-12 |website=Vanguard Newspaper|language=en}}</ref><ref>{{Cite web |date=2022-07-25 |title=Nigeria's Flutterwave faces Kenya fraud allegations |url=https://restofworld.org/2022/flutterwave-fraud-allegations-kenya/ |access-date=2022-08-16 |website=Rest of World |language=en-US}}</ref> Recent developments indicate that the CBK is revising its regulatory framework, which could soon allow Flutterwave and other fintech companies to obtain the necessary licenses to operate in Kenya.<ref>{{Cite web |last=Ndege |first=Adonijah |date=2024-06-10 |title=Kenya to issue payment licences: Flutterwave, Chipper could be first in line |url=https://techcabal.com/2024/06/10/kenya-opens-up-to-fintech-payment-licenses/ |access-date=2024-09-03 |website=TechCabal |language=en-US}}</ref>