Nigerian tech entrepreneur Favor Ori’s explores acquisition options after raising $3 million

PayDay, the fintech startup led by Nigerian tech entrepreneur Favor Ori, is actively considering acquisition offers following a remarkable period of growth and widespread adoption of its services.

The decision to explore potential acquisition opportunities comes in the wake of PayDay’s triumphant $3-million seed funding round, a venture led by Moniepoint, another prominent fintech startup under the leadership of Tosin Eniolorunda.

Speculations regarding PayDay’s acquisition had been circulating for some time. However, the suspense lifted recently when Ori, PayDay CEO, confirmed the startup’s receptiveness to acquisition discussions. Ori remarked: “Active conversations are being had with people who reached out and expressed interest in buying.”

Following the successful completion of a $3-million seed funding round in March, reports emerged that Moniepoint was in talks to acquire PayDay in a deal slated to conclude within three months.

At the time, a reliable source close to the situation disclosed that Moniepoint had issued a letter of intent for the acquisition, contingent upon specific performance milestones being achieved. The transaction was expected to materialize in the near future. However, there have been no further updates regarding the deal’s progress.

PayDay, founded by Ori nearly two years ago, maintains dual headquarters in Canada and Rwanda. The fintech firm specializes in facilitating global money transfers for Africans. The recent seed funding round boosted PayDay’s total funding to an impressive $5.1 million since its inception.

In April, as part of its overarching expansion strategy, PayDay announced its intentions to broaden its footprint in Kenya. This initiative aligns with the company’s broader expansion plans, including efforts to secure licensing for its UK entity, expand into Canada, and augment its workforce by 40-50 employees. These moves aim to bolster PayDay’s capabilities and extend its reach beyond the African continent.

PayDay’s pursuit of acquisition opportunities underscores its commitment to delivering innovative financial services to its growing customer base and solidifying its position as a leading player in the fintech industry.