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FairMoney in talks to buy Umba in a $20M all-stock deal

FairMoney, a Nigerian fintech, is reportedly in talks to buy Umba, a neo-bank with a presence in Nigeria and Kenya

FairMoney, a digital bank based in Lagos, Nigeria and headquartered in Paris, is in talks to acquire Umba,  a credit-focused digital bank providing financial services in Nigeria and Kenya, in a $20 million all-stock deal.


Umba, founded in San Francisco in 2018 by Tiernan Kennedy and Barry O’Mahony, initially positioned itself as a credit-led digital bank targeting emerging markets. Its offerings include loans, current accounts, savings accounts, fixed deposit accounts, and bill payments, catering to customers in Nigeria and Kenya. The company has raised approximately $20 million in funding.

This move signals Fairmoney’s expansion goals as the company is known for its lending services in Nigeria and will now seek to explore avenues for expansion beyond its home country. Hence, the potential acquisition of Umba aligns with FairMoney’s growth strategy, aiming to leverage Umba’s presence in Kenya.

While Umba’s potential acquisition may not solely hinge on user numbers, product offerings, or financials, FairMoney could find strategic value in Umba’s microfinance license and established infrastructure in Kenya. Sources suggest that Umba, while not actively seeking a sale, might consider FairMoney’s offer compelling, particularly given its financial standing and the potential synergies between the two fintech entities.