Paga is targeting a $ 1 billion valuation and growth
Paga, the largest mobile payments company in Nigeria, aims to become the next company worth at least a billion dollars in Africa. The company has 17 million unique users in its ranks, ranging from consumers to companies to the founders of technology companies. And its growth plans extend beyond Africa, Bloomberg reported.
CEO Tayo Oviosu is looking beyond Nigeria to expand the company into Mexico and Ethiopia, with the latter slated for 2022.
Oviosu said the company processed $ 2.3 billion in transactions last year and $ 8 billion over the past four years, Bloomberg reported. He told the news agency that Paga could reach a valuation of at least $ 1 billion “in the next year or two”. However, Oviosu wouldn’t talk about the company’s current valuation, Bloomberg reported.
A collection of agents is at the heart of Paga’s business. These people essentially do the jobs that a bank clerk would do. The company’s 27,000 agents, stationed across Nigeria, sign up customers for Paga accounts and also assist them with processing payments or arranging cash in a bank deposit.
Paga also publishes a programming interface for tech entrepreneurs. It is also expanding its business serving individuals through an association with Visa.
Paga co-founder Jay Alabraba previously told PYMNTS that cash was king in Nigeria for a long time, even after over a decade of efforts to bring cashless choices to people.
The reasons were simple: cash is known and trusted, and the people (especially Nigeria’s large population with and without a bank account) preferred to pay bills personally in cash. That was until the pandemic.
Alabraba told PYMNTS that the pandemic made in-person transactions much more difficult as companies closed their doors and the need for digital decision-making increased dramatically.
As PYMNTS mentioned, the “secret sauce” for Paga’s growth was the agent network, which provides users with an easy deposit and withdrawal point.