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TPG invests $200M in Airtel Money.

The Rise Fund, the global impact investing platform of leading alternative investment firm will invest $200 million in Airtel Africa’s subsidiary Airtel Mobile Commerce (AMC BV). In February the London listed telecom announced that it was looking to sell a minority share in its mobile money business in order raise cash for future investments.

“With today’s announcement we are pleased to welcome The Rise Fund as an investor in our mobile money business and as a partner to help us realize the full potential from the substantial opportunity to bank the unbanked across Africa.” said Airtel Africa’s Chief Executive officer Raghunath Mandava.

This investment will greatly help the holding company AMC BV reduce on its debt as well as invest in the network and sales infrastructure required for more financial inclusion across the African continent. By filing the gap between financial institutions and those with limited access, Airtel money has grown exponentially with the latest venture putting it at a value of $2.65 Billion on a cash and debt free basis.

Yemi Lalude, a partner at TPG leading the Africa investing for The Rise Fund said he was looking forward to working with Airtel Africa ‘to enhance their mobile money services, broaden its use cases and grow into new markets.’ Airtel money business largely thrives of an offline presence through kiosks, mobile money agents and shops and is currently applying for its own banking license with some Nigerian banks.

Other partnerships that Airtel made this year also include: MasterCard, Samsung, Asante, MoneyGram, World Remit and Standard Chartered Banks but to mention a few. This will allow for the digital financing company to broaden its consumer base as well as make its services more accessible for Africans across the continent.

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