CNN —
When Flutterwave was founded in 2016, the fintech company quickly became a symbol of African startup success stories. It achieved unicorn status in 2021 with a valuation of over $1 billion, and in 2022 it raised $250 million to secure a valuation of $3 billion.
CEO Olugbenga “GB” Agboola was praised for his leadership and hailed as an African fintech pioneer providing digital payment services to businesses across Africa.
Then, later that year, a series of damaging allegations in Kenya, including accusations of workplace bullying and money laundering, shocked the industry. At the time, Flutterwave denied any financial wrongdoing, sought to amicably resolve harassment claims, and took a zero-tolerance stance against bullying, but the company’s reputation suffered.
But Agboola said Flutterwave weathered the storm and came out stronger than ever.
In November 2023, Kenyan authorities cleared the company of all charges of money laundering. Additionally, a former employee who sued the company for reputational damage and emotional distress lost his appeal for $900,000, although an earlier $2,500 judgment awarded by a Kenyan court was upheld.
In his first major interview since the allegations, Agboola told CNN that Flutterwave is on a mission to rebuild trust and strengthen its governance practices.
“Trust is our business,” Agboola said. “We have worked tirelessly to regain that trust.”
“We have been working on our corporate governance, infrastructure and compliance systems. That is what we will continue to do as a company and that is part of the reason we brought on Mitesh,” he added. Ta.
In September, Flutterwave announced the appointment of Mitesh Popat, a former Citibank executive with extensive experience on the African continent, as chief financial officer.
“Coming from a very structured, highly regulated banking background, it was important for me to find the balance to put enough structure into the company to be accountable to our banking partners and investors. . We can work with regulators and customers while maintaining the level of agility that startups need to continue to innovate and grow,” Popat told CNN.
Local media reported that Flutterwave also had to deal with security incidents. Citing its partnership with Nigeria’s Economic and Financial Crimes Commission as an example, the company said in a statement that it was “committed to playing our part in ensuring the security of Africa’s financial system” and said it was “committed to doing our part to ensure the security of Africa’s financial system”. “We have made investments,” he added. We ensure the highest level of security across all of our products and have a team of world-class talent in finance, risk, legal, compliance and certification. ”
Bawo Egbakume is a senior compliance and anti-money laundering specialist not affiliated with Flutterwave, and is well-versed in the governance and operational challenges facing growing companies.
She says Flutterwave’s rapid growth has exposed weaknesses in governance, compliance, risk management strategies, and inadequate internal controls. “Early success with a focus on customer service delivery outweighed the company’s ability to implement strong internal structures, vulnerabilities to fraud, and inadequate governance oversight,” Egbakume told CNN. spoke.
However, she added, “In recent years, Flutterwave appears to have responded by strengthening its governance and improving its compliance program with greater emphasis on accountability and transparency.”
“Global alliances and investor pressure have likely forced the company to make necessary reforms and adhere to improved governance standards,” she said.
Agboola said the company secured new payments licenses in Ghana, Zambia, Uganda and Rwanda last year, as well as more than 20 payments licenses in the United States through its leading bank partners, expanding cross-border transactions from the United States to Africa. It is said that it made it easier.
Although the company has previously talked about plans for an IPO, Agboola said the company is “currently focused on expanding and deepening its market penetration in enterprise payments.”
“The IPO is one of many growth opportunities we are considering, and we continue to have processes in place to ensure we are well prepared for the next stage of growth,” he added. .
Beyond his focus on governance and structure, Agboola envisions a future where Africa’s diverse payment systems are seamlessly integrated into a unified marketplace. “Africa today is not a country, but we want Africa to feel like one,” he said.
Agboola highlighted the challenges in navigating the continent’s fragmented payment systems, such as M-Pesa in Kenya and bank transfers in Nigeria, which complicate cross-border transactions.
“Transferring money from Nigeria to Ghana can take up to three days,” Agboola explained. “Our mission is to enable businesses and consumers to trade cross-border as easily as they do domestically.”
Although based in San Francisco, the company remains focused on the African market, Agboola said, recently partnering with Main Street Bank to unlock access to 49 U.S. states and providing seamless access for African businesses through its sending app. He said it has enabled cross-border trade.
He added that this partnership and the integration of American Express into Flutterwave’s payments network is a major win for African businesses, allowing them to reach millions of new customers around the world.
“These partnerships are a game changer,” Agboola said. “At MainStreet Bank, we don’t just connect Africa and the United States. We facilitate faster, more reliable payments for merchants and consumers on both continents.”
Beyond partnerships, Flutterwave is also investing heavily in new technologies such as AI to strengthen its payments infrastructure.
“We are committed to staying ahead of the curve by leveraging AI to improve compliance, oversight and risk management,” Agboola said.
