Airtel Africa plans IPO for mobile money unit with valuation of over $4 billion

Airtel Africa Plc, a major telecommunications company led by billionaire Sunil Mittal, has engaged Citigroup Inc. to prepare for an initial public offering (IPO) of its mobile money division, Airtel Money. This is according to Bloomberg, citing sources familiar with the matter, but earlier reported by Daba Finance.

The company is Africa’s second-largest by number of active subscribers, with operations spanning 14 African countries. It is collaborating with the Wall Street bank and holding investor meetings in Dubai this week, Bloomberg reported, noting that the sources requested anonymity due to the private nature of the information.

Airtel Africa is exploring a potential valuation for Airtel Money exceeding $4 billion. The company has considered listing the unit in the United Arab Emirates, London, or other European markets, though no final decisions have been made regarding the timing, location, or scale of the IPO.

An Airtel Africa spokesperson confirmed the company’s commitment to listing its mobile money business in the first half of 2026. Representatives for Citigroup declined to comment, per the report.

“We will list next year. We will continue to bring additional countries into the envelope. We are still a year from that IPO,” said Olusegun Ogunsanya, managing director and chief executive officer of Airtel Nigeria, according to Businessday.

Airtel Africa records impressive growth in mobile money

Airtel Africa’s mobile money unit reported strong growth in the quarter ended June 2025. It had 45.8 million customers, up 16.1% from the prior year. Quarterly transaction value reached $40.5 billion, a 35.0% increase in reported currency and 34.5% in constant currency, leading to an annualised value of $162 billion. Mobile money ARPU rose to $2.1, up 12.0% in reported currency and 11.3% in constant currency.

Mobile money revenue totaled $290 million for the quarter, growing 31.0% in reported currency and 30.3% in constant currency. After inter-segment eliminations with mobile services, revenue was $225 million. EBITDA for the unit was $153 million, up 29.7% in reported currency and 29.0% in constant currency, with margins at 52.7%, down 77 basis points due to increased sales and marketing expenses to support growth. Operating profit stood at $149 million, increasing 30.3% in reported currency, while operating free cash flow matched at $149 million, up 30.3%.

In 2021, Airtel Money received significant investments, including $200 million from TPG Inc. at a valuation of $2.65 billion and $100 million from Mastercard Inc. Later that year, an affiliate of Qatar’s sovereign wealth fund also acquired a stake in the unit.

The mobile money sector in Africa is expanding rapidly, driven by a young population increasingly adopting technology for financial services, making the continent a key market for fintech companies.

“We were the first to deploy ATMs, giving us a significant head start. Our network boasts 29,000 exclusive mobile money branches, with a well-established system. We have been effective in leveraging our infrastructure to our advantage,” Ogunsanya explained.

In an annual report released July 2025, Airtel notes that “Our strategic focus on great customer experience is underpinned by sustained network investment with the rollout of
over 2,300 new sites to reach 37,579 sites and an expansion of our fibre network by 2,700 kms to over 79,600 kms. This investment continues to drive increased data capacity across the region with 4G population coverage reaching 74.7% – an increase of 3.4% from a year ago.”

Sunil Taldar, Airtel Africa CEO said in July: “We see significant potential to further advance financial inclusion through the continued growth of our financial services offering. The continued expansion of our mobile money portfolio and the advancement of enterprise and digital payments contributed to a 35% growth in annualised transaction value to $162bn.

“We will continue to focus on technology and the range of product offerings to deliver a differentiated experience for our customers.”

Airtel Africa is listed on stock exchanges in London and Lagos. It is part of a broader business portfolio controlled by Sunil Mittal, whose family has a net worth exceeding $27 billion, according to the Bloomberg Billionaires Index. Mittal’s other ventures include Bharti Airtel Ltd., a leading Indian telecom operator, and OneWeb, a UK-based satellite company. In 2024, a unit of Bharti Enterprises Ltd., a closely held company, acquired a 24.5% stake in BT Group Plc.

The planned IPO reflects Airtel Africa’s strategy to capitalise on the growing demand for mobile financial services in Africa, where digital banking is gaining traction. The company has not yet finalised details, and the process remains subject to market conditions and strategic considerations.