Lagos-based mobile payments innovator, SimplePay, has received a significant investment from the Bank of Industry (BOI). This strategic partnership not only provides crucial financial backing but also brings valuable expertise to the company.
Following a successful seed round that included support from Seedstars, SimplePay has been steadily expanding its operations. CEO Simeon Ononobi has previously expressed ambitions for a substantial funding round, and this investment from BOI marks a significant step towards achieving those goals. While the exact terms of the deal remain undisclosed, it is understood that Ononobi retains a majority stake in the company.
This new infusion of capital will enable SimplePay to accelerate its growth trajectory. The company plans to significantly expand its engineering team to further enhance its innovative payment technologies. Moreover, the investment will facilitate the forging of strategic partnerships, opening doors to new opportunities and expanding SimplePay’s reach.
The partnership with BOI extends beyond financial support. The bank, recognizing the transformative potential of mobile payments in Nigeria, aims to actively participate in shaping the future of this sector. This collaboration is expected to provide SimplePay with valuable industry connections and facilitate access to a wider network of Small and Medium Enterprises (SMEs).
While SimplePay has achieved notable progress, increasing user adoption remains a key challenge. The company must effectively communicate the value proposition of its platform to both businesses and consumers, encouraging them to create and utilize SimplePay accounts for their electronic transactions. A significant portion of the new funding is likely to be allocated towards marketing and user acquisition initiatives.
The competitive landscape for mobile payments in Nigeria is rapidly evolving. Paga is reportedly securing substantial funding, while Interswitch has invested in ACE, an e-commerce logistics startup. Konga’s acquisition of a mobile money company underscores the growing importance of integrated payment solutions. Established players like Etranzact and global giants like PayPal are also actively expanding their presence in the market.
This influx of investment and the increasing competition highlight the dynamic nature of the Nigerian mobile payments market. SimplePay, with its strategic partnership with BOI and a focus on innovation, is well-positioned to capitalize on this growth and solidify its position as a leading player in this exciting sector.
