OPay'svalue ascribed at $2.75 billion driven by $258 million Opera investment
In the rapidly evolving world of African fintech, Opera's investment in OPay has solidified the company's position as a major player. Founded in 2018 by Chinese billionaire Zhou Yahui, OPay has grown rapidly across Nigeria and Egypt, establishing itself as a key player in digital payments and financial inclusion.
According to Opera's latest filings, OPay's valuation stands at approximately USD 2.75 billion as of 2024, a significant increase from about USD 2 billion in 2021. This growth is attributed to Opera's increased stake in OPay, which rose from 6.4% to 9.4% in 2023.
However, this valuation is not without risk. Market volatility, competition from rivals like Flutterwave and PalmPay, and dependence on the economic stability and regulatory landscape in Nigeria and Egypt pose potential threats. Opera Limited, the technology company registered in the Cayman Islands and owned by Chinese interests, is aware of these risks. They have cautioned that future reductions in OPay's valuation could lead to losses.
Despite these risks, the trajectory of OPay represents a high-reward, high-risk bet on the continent's digital finance revolution. The company's services, which include mobile wallets, merchant payment solutions, and peer-to-peer transfers, have seen impressive growth. In 2023, OPay's customer base reportedly grew fourfold, and the company forecasts OPay's revenue to grow at an annualized rate of 35% between 2023 and 2030.
Industry analysts are closely watching for signs of an IPO or major funding round for OPay. While no explicit IPO plans have been announced publicly, OPay's resilience amid global funding challenges, strong backing by significant investors like SoftBank and Sequoia, and expanding operational footprint in several African countries position it as a promising candidate for a future IPO.
Opera Limited’s stock has experienced a recent decline of around -13.67% over the last month and approximately -13.99% over the last three months. Despite this, the company shows a moderate beta of 0.89, implying somewhat lower volatility relative to the overall market. Opera’s market cap stands at US$1.43 billion, and it reported a net profit margin of 16.15% in the trailing twelve months.
As of December 31, 2024, the value of Opera's stake in OPay is $258.3 million. The $94.8 million in unrealized gains from Opera's investment in OPay could disappear if OPay's valuation drops. This underscores the potential risks associated with Opera's investment, but also the significant rewards if OPay continues to grow and succeed in the African fintech market.
In summary, Opera's investment in OPay has positioned the African fintech company as a promising contender in the digital finance revolution. While the company faces risks, its impressive growth and strong backing by significant investors suggest a promising future. The potential for an IPO or major funding round remains on the horizon, but no official disclosures have been made as of mid-2025.
- As the digital finance revolution flourishes in Africa, OPay's expansion into lifestyle services, such as sports and venture capital investments, will further reinforce its position as a major player.
- The rise in OPay's valuation, currently standing at approximately USD 2.75 billion in 2024, has been a boon for the finance sector, making it possible for more people to access services like technology-driven sports events and luxury experiences.
- With the dynamic landscape of sports, technology, and finance intertwining, Opera's well-timed investments in valuable companies like OPay are crucial in driving financial inclusion and fostering innovation on the African continent.
