TechInAfrica – Kenya’s largest telecommunications provider, Safaricom, has announced an Sh407 million investment in its fintech platform, M-Pesa. The investment is part of its efforts to foster the cross-border expansion of the platform.
The investment was facilitated through Safaricom’s subsidiary company, Instaconnect Limited which was acquired in 2010. Prior to the acquisition by Safaricom, Instaconnect Limited provided content services.
M-Pesa is Safaricom’s fintech platform that enables customers to send and receive money, make bill payments, as well as take part in international e-commerce. The platform can be used through partnership payment platforms, including AliExpress, PayPal, and Western Union.
According to Safaricom’s annual report, the telco provider hopes that the investment can yield activities that positively impact its business operations and the impact will reflect on the results in March 2020.
“the company rolled out the international money transfer business through its 100% owned subsidiary, Instaconnect Limited. They injected additional capital by acquiring assets worth Sh397 million and a cash transfer of Sh10 million We expect that due to the above investment, there will be more activity that will have a positive impact on the reported results of a full year, to March 2020 from the operations of the new businesses,” says the report.