Following its 2016 launch, the finance company Flutterwave swiftly rose to prominence as a symbol of African startup success. It became a unicorn in 2021 when its valuation surpassed $1 billion, and after financing $250 million, it was valued at $3 billion in 2022.
In addition to being praised for his leadership, CEO Olugbenga “GB” Agboola was recognized as a pioneer in African fintech, offering digital payment services to companies all over the continent.
Later that year, a surge of false charges of money laundering and workplace bullying surfaced in Kenya, sending shockwaves through the business.
Although Flutterwave at the time maintained a zero-tolerance policy for bullying, denied financial misconduct, and claimed to have attempted to resolve a harassment claim peacefully, the company’s reputation suffered.
But according to Agboola, Flutterwave has persevered and come out stronger than before.
Kenyan authorities exonerated the business on all money laundering charges in November 2023. In addition, a former employee who sued the corporation for emotional anguish and reputational harm lost her appeal for $900k, even though a Kenyan court maintained the initial $2,500 award.
According to local media, Flutterwave has also had to handle security-related issues. Using its collaboration with Nigeria’s Economic and Financial Crime Commission as an example, the company said in a statement that it is “committed to doing our part to ensure the security of the financial system in Africa.” It also stated that it has “invested heavily in ensuring the highest level of security across all our products and have a team of world-class talents across finance, risk, legal, compliance and certifications.”
Senior compliance and anti-money laundering specialist Bawo Egbakhumeh, who is not affiliated with Flutterwave, is knowledgeable about the operational and governance issues that expanding businesses encounter.
According to her, Flutterwave’s rapid expansion revealed flaws in internal controls, governance, compliance, and risk management techniques. Egbakhumeh informed the media that the company’s early success, which was primarily concentrated on providing excellent customer service, exceeded its capacity to put in place robust internal structures, as well as its susceptibility to fraud and inadequate governance monitoring.
Yet, she continued, “Flutterwave appears to have responded in recent years by strengthening its governance and enhancing compliance programs with a greater emphasis on accountability and transparency.”
“The corporation probably made the required changes and adhered to better governance norms as a result of pressure from investors and international alliances, she said.
Agboola claims that through a significant partner bank, the company has obtained more than 20 payment licenses in the US and new ones in Ghana, Zambia, Uganda, and Rwanda in the past year, enabling cross-border transactions from the US to Africa.
According to Agboola, the company is “focused right now on expansion and deepening the company’s market penetration in enterprise payments,” despite having previously discussed ambitions to go public.
“We continue to put procedures in place to be well-prepared for that next phase of our growth, and an IPO is one of many growth opportunities on the table,” he continued.
Agboola sees a future in which Africa’s various payment systems are smoothly combined into a single marketplace, going beyond the emphasis on structure and governance. “We want to make Africa feel like a country, even though it isn’t one yet,” he stated.
Agboola emphasized how difficult it is to navigate the continent’s disjointed payment systems, which make cross-border transactions more difficult. Examples of these systems include M-Pesa in Kenya and bank transfers in Nigeria.
Agboola clarified that a money transfer from Nigeria to Ghana can take up to three days. “Our goal is to make cross-border transactions as easy for consumers and businesses as they are within them.”
According to Agboola, the San Francisco-based company, which is still very much focused on the African market, recently collaborated with MainStreet Bank, opening up 49 US states and enabling smooth cross-border transactions for African companies using its Send App.
He continued by saying that this partnership, together with American Express’s incorporation into Flutterwave’s payment network, is a huge victory for African companies, giving them access to millions of new clients around the world.
“These collaborations are revolutionary,” Agboola said. “We’re not just linking Africa and the US with MainStreet Bank; we’re enabling quicker, more dependable payments for businesses and customers on both continents.”
In addition to collaborations, Flutterwave is making significant investments in cutting-edge technology like artificial intelligence to improve its payment infrastructure.
Agboola stated, “We are dedicated to staying ahead of the curve by utilizing AI to enhance our monitoring, compliance, and risk management.”
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