The Rise Fund, the global impact investing platform of investment firm TPG is investing $200 million to buy a minority stake in Africa Airtel’s mobile money business.
The investment will see the mobile money business – Airtel Mobile Commerce BV (AMC BV) — valued at $2.65 billion
AMC BV is an Airtel Africa subsidiary and the holding company for several of Airtel Africa’s mobile money operations across 14 African countries, including Kenya, Uganda, and Nigeria.
The company currently has 21 million users and generated revenue of $110 million in the most recent quarter.
AMC BV says the holding company will use the investment to reduce its debt and invest in network and sales infrastructure in the respective operating countries. The deal will close in two phases — $150 million invested at the first close, with $50 million to be invested at the second close.
Under the deal with TPG, Airtel Africa will continue to hold a majority stake in the mobile money unit. The company plans to explore an IPO within the next four years.
With more than $5 billion in assets under management across its platform, the San Francisco, California-based The Rise Fund is known to be one of the world’s largest global impact platforms.