MFS Africa acquires Nigerian fintech startup, Baxi

MFS Africa has announced the completion of its acquisition of Capricorn Digital, Baxi’s parent business. The firm has refused to disclose the exact value of the deal.

Capricorn operates a digital payment network under the Baxi brand, which caters to small and medium-sized enterprises (SMEs). The firm was launched in 2014 by Degbola Abudu. 

Its offering is structured to provide the necessary assistance Nigerians need as regards everyday financial needs, including utility bill payments, airtime purchases, TV bills, and internet subscriptions, withdrawals, and mobile transfers.

These offerings are available via the firm’s retail network of agents and merchants, domiciled in some of the nation’s most remote areas. Its product suite includes BaxiBox POS, BaxiPay, Baxi MPoS Device, and BaxiRIMS products.

Capricorn Founder and CEO, Degbola Abudu in a statement indicated that the deal, once it obtains regulatory approval from the Central Bank of Nigeria (CBN), will rank as the second-highest fintech acquisition in Nigeria. The deal is expected to be second only to Stripe’s US$200 million acquisition of Paystack last year.

The deal is a 100% cash acquisition and will aid MFS expansion into other parts of Africa’s largest economy where the firm’s footprint has been limited due to the country’s lack of mobile wallets.

Capricorn will now take on the name MFS Africa, while its flagship product, Baxi, will retain its name.