Luxembourg-based fintech firm MyBucks, which runs GetBucks in Kenya, Uganda and several other markets has acquired a significant stake in Opportunity International, to help it set up banking operations in various markets across the continent.
The deal will give MyBucks, Opportunity International’s Trademark License Agreement across Africa. This will enable the firm to start deposit-taking operations in Kenya, Uganda, Tanzania and Mozambique with the intention of future expansion into Zambia and other potential African countries.
“Having a bank account is fundamental to ensuring financial inclusion in emerging markets,” said Dave van Niekerk, CEO, MyBucks. “Our partnership not only ensures the existing operations we acquired from Opportunity International remain under the Opportunity banner, but also includes select new deposit-taking operations in our other countries as well.”
Through the partnership, Opportunity International will continue to provide its clients with savings, small and micro enterprise credit, education loans, and agricultural loans, and will also incorporate the added benefits of the MyBucks technology platform, which will ensure much faster product delivery, as well as more accurate credit scoring.
“Our partnership enables MyBucks to operate the banks we helped build in Africa,” said Vicki Escarra, global CEO, Opportunity International. “It also allows us to focus on providing the innovative programmes and services our clients need to access basic financial services that will ultimately help them break the cycle of poverty and improve their lives.
The 15-year agreement not only promotes financial inclusion but will double the number of clients Opportunity International serves in three years while MyBucks will give it the banks SMART certification. MyBucks will pay a consideration of EUR 4.75m for the license, equating to a maximum of EUR 79k per annum per bank. MyBucks will settle the consideration through the issuance of 250,000 shares out of its authorised capital at a value of EUR 19 per share.