Standard Bank Group Ltd. is reportedly in talks to acquire a stake in Nigerian fintech giant OPay Digital Services Ltd. ahead of the company’s planned initial public offering in the United States.
People familiar with the discussions said the talks are still at an early stage and could end without an agreement. Neither Standard Bank nor OPay has publicly confirmed the proposed transaction.
OPay, which is backed by SoftBank Group Corp. and Sequoia Capital, is reportedly preparing for a US IPO that could value the company at approximately $4 billion.
The fintech has engaged Citigroup Inc., Deutsche Bank AG and JPMorgan Chase & Co. to advise on the proposed New York listing. The timing, size and final structure of the offering have not yet been determined.
A potential $4 billion valuation would represent a significant increase from OPay’s $2 billion valuation following its $400 million funding round in 2021, which was led by SoftBank.
Standard Bank’s reported interest comes at a time when pre-IPO investments in fast-growing technology companies are attracting traditional financial institutions seeking exposure to the expanding fintech sector.
For Standard Bank, taking a stake in OPay could provide both financial and strategic benefits by giving the African banking group direct exposure to one of Nigeria’s leading digital payment platforms.
Since launching in Nigeria in 2018, OPay has built a large agent banking network and provides services including money transfers, bill payments, merchant services and mobile financial solutions.
Its combination of a digital platform and extensive physical agent network has helped it reach millions of Nigerians, particularly customers in areas with limited access to conventional banking services.
The reported discussions highlight the growing relationship between traditional banks and fintech companies as financial services across Africa continue to evolve.
