In a unusual intra-African crypto acquisition, Nigerian crypto startup Roqqu has acquired Flitaa, one different crypto change with operations in Nigeria and Kenya, marking its entry into East Africa’s rising digital asset market. The company didn’t disclose the price of the all-cash deal.
The acquisition, which Roqqu claims has acquired regulatory approval, permits the company to bypass Kenya’s slow-moving crypto licencing course of and sidestep the hurdles that rivals like Busha and Luno have confronted. It moreover indicators a strategic shift as Roqqu deepens its African footprint previous Nigeria, Ghana, and South Africa, and builds a case for crypto consolidation all through the continent.
“We’re not merely setting up to extend to Europe,” Ayo Shonibare, Roqqu’s chief promoting and advertising officer, talked about. “We moreover want to extend into our home base [Africa], so it solely is wise that in our quest for this enlargement, we moreover improve into our personal residence territory.”
As part of the acquisition, Flitaa will proceed to perform independently using Roqqu’s infrastructure, nonetheless its administration and employees have exited the company, with severance packages supplied. Good Onomor, a director at Roqqu, will head Flitaa’s operations and performance its CEO.
The blending gives Flitaa clients entry to Roqqu’s broader suppliers whereas stabilising the Kenyan startup’s operations, which had suffered from restricted funding, weak infrastructure, and a slim product offering. The combined entity now positions Roqqu for deeper enlargement into Uganda, Rwanda, and Tanzania.
“We have to stabilise the operations of Flitaa and guarantee they’re as sturdy as Roqqu’s,” talked about Shonibare. “Our objective is to be sure that current and new clients have the benefit of the equivalent experience all through every platforms.”
Flitaa’s current groundwork in Kenya made the acquisition valuable for Roqqu. The crypto startup had already organize native operations, giving Roqqu a direct entry into the Kenyan market with out the friction of setting up from scratch. Shonibare well-known that Flitaa had fulfilled Kenya’s regulatory requirements sooner than the acquisition.
“Flitaa had already figured it out in Kenya,” he outlined. “Fairly than endure your full downside of organising from scratch, we observed value of their groundwork, notably their plans to extend into Uganda, Rwanda, and Tanzania. That they’d already organize the operational processes in these nations.”
Primarily based in 2021, Flitaa constructed its presence by itemizing lesser-traded cryptocurrency tokens. The startup grew to 72,544 clients—with most of its operations in Kenya—and processed spherical 560,000 transactions month-to-month, in accordance with inside figures. Its key profit lay in its deep M-PESA integration and native traction in Kenya’s $100 million crypto market. This M-PESA integration allowed purchasers to easily buy, promote, and convert their crypto belongings to Kenyan Shillings.
Joseph Mutati served as Flitaa’s nation supervisor in Kenya, serving to to deepen the startup’s traction throughout the nation. He moreover led the startup’s engagement with regulators and native companions.
Whereas Flitaa lacked psychological property (IP) and regulatory licences and suffered poor app evaluations, its individual base and compliance posture made it a valuable off-ramp for Roqqu. M-PESA entry is particularly important in Kenya, the place banks are at current barred from providing suppliers to crypto companies.
Two funding analysts who spoke to TechCabal estimated the price of the deal to be between $85,000 and $350,000, citing Flitaa’s small individual base and the restricted spending vitality of its African purchasers, which saved its earnings potential low.
Joseph Mutati didn’t immediately reply to a request for contact upon the valuation.
Roqqu declined to disclose the price of the deal.
Get the best African tech newsletters in your inbox
Why this points
Roqqu’s acquisition of Flitaa is the first publicly disclosed intra-African consolidation throughout the crypto sector. The deal indicators a maturity milestone for the continent’s crypto ecosystem. It moreover signifies a rising urgency amongst African crypto startups to hurry up cross-border enlargement whereas regulatory frameworks all through numerous components of the continent keep in flux.
By shopping for a regionally embedded platform, Roqqu enters Kenya with out having to attend for formal licencing beneath the nation’s pending Digital Asset Service Provider (VASP) framework, which stays to be beneath analysis by a multi-agency exercise drive.
This switch echoes associated urgency seen in 2023 when Blockfinex acquired Nigerian startup Fluidcoins in a cross-market transaction. That deal obtained right here close to an intra-African milestone nonetheless didn’t pretty qualify, as Blockfinex is headquartered throughout the UAE no matter its founder, Danny Oyekan, being Nigerian.
The deal moreover indicators to completely different African crypto companies that regional merger and acquisition (M&A) is now a viable improvement method, not solely a survival tactic.
Roqqu marches inwards
Roqqu, based mostly in 2019, has not raised any exterior funding and financed the Flitaa acquisition via inside cash transfer.
Its presence in Nigeria, Ghana, and South Africa has allowed the company to assemble a pan-African individual base. In South Africa, Roqqu has acquired regulatory approval to produce crypto suppliers nonetheless has however to secure a crypto-asset service provider (CASP) licence. In Nigeria, it stays one of many broadly used crypto exchanges.
The company moreover holds a digital overseas cash licence in Europe, allowing it to perform all through 28 nations throughout the European Monetary House (EEA).
With this acquisition, Roqqu is now turning its focus once more to the continent. The company is making an attempt to extend deeper into East Africa, using Flitaa’s operational groundwork as a launchpad.
“Our plan is to deepen Roqqu’s footprints all through the African continent,” talked about Benjamin Onomor, Roqqu CEO. “We have to help hundreds and hundreds of people work together with this Web3 monetary system for the benefit of the continent and all people in it.”
The entry of bigger players into Kenya indicators rising curiosity throughout the nation’s crypto monetary system. With stronger coaching and hiring ramp-ups anticipated shortly, Kenya’s crypto adoption could enhance throughout the coming years, opening {the marketplace} for additional opponents.
Roqqu expects the opponents to intensify, with deep-pocketed abroad crypto companies akin to Binance, Bitget, OKX, Huobi, and Paxful moreover participating in on the market. Clearer crypto regulatory frameworks all through East Africa will help Roqqu consolidate its pan-African presence.
“That’s our first acquisition, nonetheless will most likely be the first of many to return,” talked about Shonibare.
Mark your calendars! Moonshot by TechCabal is once more in Lagos on October 15–16! Be a part of Africa’s excessive founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early fowl tickets now 20% off—don’t snooze! moonshot.techcabal.com
Keep forward of the curve with NextBusiness 24. Discover extra tales, subscribe to our publication, and be part of our rising neighborhood at nextbusiness24.com
