Elumelu’s Redtech Plans $100m Capital Raise to Fuel African Expansion

• Projects N100 trillion in processed transactions within 2 years from N30 trillion in 2025

James Emejo in Abuja and Nume Ekeghe in Lagos with agency report

Financial technology company, Redtech Limited is seeking to raise about $100 million over the next two years to support its rapid expansion across Africa.

The Lagos-based fintech, owned by business tycoon, Tony Elumelu, offers payment services and agency banking in Nigeria.

The company’s Chief Executive, Emmanuel Ojo, said it planned to raise additional funding to expand into 29 African countries in the first half of the year, according to Bloomberg.

Following the expansion drive, Redtech is expected to explore a Series A funding round to deepen its footprint and roll out new products across the continent.

The company expects transaction volumes on its platform to rise to about 100 billion annually within the next two years, up from 25 billion recorded last year.

Over the same period, the value of processed transactions is projected to reach N100 trillion ($73 billion), from about N30 trillion in 2025, underscoring its ambition to become a major pan-African payments player.

Ojo said, “We have been scaling up very fast. The business has now reached a more mature stage, and to expand meaningfully across Africa, we need additional equity and a broader product offering.”

The company has deployed over 30,000 point-of-sale (POS) terminals nationwide and launched a payment gateway, positioning it to compete with industry heavyweights.

Fintech is a subsidiary of Heirs Holdings, Elumelu’s investment group with interests spanning energy, hospitality and financial services.

Elumelu is also the chairman and largest individual shareholder of United Bank for Africa (UBA) Plc.

As competition in Africa’s payments space intensifies, Redtech will be going head-to-head with rivals that are also scaling aggressively.

Ojo said the company plans to integrate its payments infrastructure with UBA’s cross-border banking network and other financial institutions, enabling transactions across as many as 54 African countries by the end of the year.

“We’ll be deploying over 100,000 POS machines before the end of this year,” he said.