Global payment technology firm Mastercard has acquired a minority stake of $200 million in MTN Group’s fintech business at a valuation of $5.2 billion on a cash and debt-free basis.

The MTN Group Fintech business includes mobile money platform MoMo, insurance offerings, airtime lending and e-commerce, as well as its network services. In August 2023, MTN Group announced it was looking to sell about a 30% stake in its fintech business. MTN Group’s fintech business delivered on its rapid expansion plans with growth in volume of transactions increased by 37% to 8.3 billion in the first half of the year from its 61 million active MoMo customers.

MTN Group Fintech and Mastercard memorandum of understanding for a minority investment valued the total enterprise at about US$5.2 billion. The $200 million by Mastercard into Group Fintech was on a cash and debt-free basis. Now with the closing of the investment, the two firms are waiting for customary closing conditions.

Looking ahead, MTN will keep working to create shared value across our markets. “We are focused on the continued execution of our Ambition 2025, which remains relevant in the current macroeconomic volatility and presents attractive scope for growth,” said MTN Group President and CEO Ralph Mupita. “As we manage the challenges in our operating environment, as well as the near-term impacts on our top-line and margins, we maintain our medium-term guidance.”