As Institutional Investors Clamor for Payment Tech and Africa, Fintech Tingo Grabs Attention

Posted on 02/22/2022

Institutional investors are keeping watch of a Nigerian fintech firm called Tingo Inc. Tingo is seeking to raise US$ 500 million in debt and equity financing as the company is in talks to list on the New York Stock Exchange in 2022. Tingo trades over the counter in the U.S. and is valued at about US$ 6.3 billion. Tingo generated revenue of US$ 594 million in 2020, with EBITDA at US$ 212 million. Tingo is a device and a service technology company focused on creating digitally inclusive ecosystems in the AgriTech and FinTech sectors in Africa.

Tingo conducts much of its activities in Nigeria, but seeks to expand its business model across the African continent. The fintech company has expansion plans that involve spanning operations to at least 19 African nations over the next few years. Tingo was founded by Lagos-born Dozy Mmobuosi Jr. and he runs Tingo International Holdings, Tingo Remit, and Nwassa. Mmobuosi and his father co-founded Tingo Mobile Plc (Nigeria), formerly Fair Deal Concepts Limited, in January 2001. Tingo Remit is a money transfer and healthcare gifting platform. Mmobuosi also founded Africa’s first agricultural technology and digital platform named Nwassa commenced operations in 2020. TingoPay is a comprehensive mobile wallet. Mmobuosi is also working using blockchain technology to power trade across African nations.

In the agritech funnel, Tingo claims roughly 12 million mostly rural-farmer customers. The company leases smartphones and the mobile devices link growers to access markets and credit for their produce via apps.

GEM Deal
In June 2021, Tingo International Holdings, Inc., which holds much of Tingo, got a US$ 400 million investment commitment from GEM Global Yield LLC SCS, the Luxembourg based private alternative investment group. Under the agreement, GEM provided Tingo International Holdings with a share subscription facility of up to US$ 400 million for a 36-month term following a public listing of the Tingo International Holdings common stock. Concurrent with a public listing Tingo International Holdings will issue warrants to GEM to purchase up to 6.4% of the common stock of the company.

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