Stanbic IBTC Holdings Plc, a subsidiary of Standard Bank Group, is set to inject ₦4 billion ($2.48 million) into its fintech arm, Zest Payments Limited, as part of a broader strategy to strengthen its presence in Nigeria’s dynamic financial technology sector. This investment follows the company’s ₦148.71 billion capital-raising initiative.
The capital allocation, representing approximately 3% of the total funds raised, is aimed at enhancing Zest Payments’ market position and accelerating its expansion in the competitive fintech landscape.
“At about 3.6% of ₦148.71 billion, five billion naira will be allocated to recapitalising two subsidiaries,” said Kunle Adedeji, Acting CEO and Group CFO of Stanbic IBTC, during the bank’s rights issue presentation. “Zest Payments will receive ₦4 billion, while ₦1 billion will be directed toward our venture business.”
This move represents a crucial turning point for Zest Payments, which has faced challenges in achieving profitability since its inception. In 2023, the company—formerly known as Stanbic IBTC Financial Services—reported a ₦1.2 billion loss, with a total income of just ₦68 million.
Unlike many fintech startups that function as payment switches, Zest Payments differentiates itself by focusing on digital commerce and online payment solutions. Leveraging the vast business network of its parent banking group, Zest enables businesses to establish digital sales channels with integrated payment solutions.
The platform supports a range of payment methods, including QR codes, USSD, card transactions, and bank transfers, while also holding a Value-Added Service (VAS) aggregator license for bill payments. “We currently have 25,000 products on our marketplace,” noted a company representative.
With this strategic capital infusion, Zest Payments aims to accelerate its growth trajectory and solidify its position as a key player in Nigeria’s evolving fintech ecosystem.
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