Opera Limited, a technology company based in the Cayman Islands and owned by Chinese interests, has seen a significant increase in the valuation of its minority stake in OPay, a leading fintech company in Africa. According to Opera’s recent filings with the US Securities and Exchange Commission (SEC), its 9.4% stake in OPay was valued at $258.3 million as of December 31, 2024, indicating an overall valuation of OPay at approximately $2.75 billion.
The filings also revealed that Opera recorded $94.8 million in unrealized fair value gains from its investment in OPay over the past two years, with $89.8 million in 2023 and an additional $5 million in 2024. Despite these gains, Opera cautioned that future fluctuations in OPay’s valuation could result in losses, given the volatile nature of fintech investments in emerging markets.
OPay, founded in 2018 by Chinese billionaire Zhou Yahui, has experienced rapid growth in Nigeria and Egypt, emerging as a key player in the digital payments and financial inclusion space. The company offers a range of services, including mobile wallets, merchant payment solutions, and peer-to-peer transfers, and has gained significant traction in Nigeria, where traditional banking access is limited for many individuals.
OPay’s expansion was further accelerated by Nigeria’s controversial 2023 currency redesign, which caused cash shortages and drove consumers towards digital alternatives. The company’s customer base reportedly quadrupled in 2023, and Opera projects OPay’s revenue to grow at a rate of 35% annually between 2023 and 2030.
While OPay’s valuation has steadily risen from $2 billion in 2021 to nearly $3 billion today, other African startups have struggled to maintain their valuations amidst a broader slowdown in venture capital funding. Opera’s decision to increase its stake in OPay from 6.4% to 9.4% in 2023 reflects confidence in the fintech’s long-term prospects, with the company now considering potential valuation growth or an IPO.
Despite OPay’s strong performance, Opera’s filings highlight potential risks, including market volatility dependent on economic stability and regulatory conditions in Nigeria and Egypt, as well as competition from rival fintech companies like Flutterwave and PalmPay. The $94.8 million in unrealized gains also pose a risk, as they could disappear if OPay’s valuation declines.
Industry analysts are closely monitoring for indications of an IPO or significant funding round for OPay, which could solidify its position as Africa’s most valuable fintech company. As the continent’s digital finance revolution continues to unfold, OPay’s trajectory represents a high-reward, high-risk investment opportunity.
