Opera Limited, a technology company registered in the Cayman Islands and owned by Chinese interests, has reported a notable rise in the valuation of its minority stake in OPay, one of Africa’s fastest-growing fintech companies. As per Opera’s latest regulatory filings with the US Securities and Exchange Commission (SEC), the value of its 9.4% stake in the Nigerian digital payments firm was $258.3 million as of December 31, 2024. This implies an overall valuation of OPay at roughly $2.75 billion.
The filings also disclose that Opera recognized $94.8 million in unrealized fair value gains from its investment in OPay over the past two years—$89.8 million in 2023 and an additional $5 million in 2024. However, Opera cautioned that future reductions in OPay’s valuation could lead to losses, given the unpredictable nature of fintech investments in emerging markets.
OPay, founded in 2018 by Chinese billionaire Zhou Yahui, has grown rapidly across Nigeria and Egypt, establishing itself as a key player in digital payments and financial inclusion. Its services, which include mobile wallets, merchant payment solutions, and peer-to-peer transfers, have gained significant traction in Nigeria, where access to traditional banking remains limited for many people.
The company’s growth was further fueled by Nigeria’s controversial 2023 currency redesign, which led to cash shortages and prompted consumers to turn to digital alternatives. OPay’s customer base reportedly grew fourfold in 2023, and Opera forecasts OPay’s revenue to grow at an annualized rate of 35% between 2023 and 2030.
OPay’s rise contrasts with a broader slowdown in venture capital funding for African startups. While OPay’s valuation has steadily increased—from $2 billion in 2021 to nearly $3 billion today—other high-profile startups have struggled to retain their valuations.
Opera’s decision to increase its stake in OPay from 6.4% to 9.4% in 2023 signals confidence in the fintech’s long-term outlook. The company had previously classified its OPay shares as “held for sale,” but reversed this position in late 2024, indicating that it expects potential valuation growth or an IPO.
Despite OPay’s strong performance, Opera’s latest filings underscore potential risks:
- Market volatility: OPay’s valuation is dependent on the economic stability and regulatory landscape in Nigeria and Egypt, as well as competition from rivals like Flutterwave and PalmPay.
- Unrealized gains ≠ cash: The $94.8 million in paper profits could disappear if OPay’s valuation drops.
Industry analysts will be closely watching for signs of an IPO or major funding round, which could solidify OPay’s position as Africa’s most valuable fintech company. For now, its trajectory represents a high-reward, high-risk bet on the continent’s digital finance revolution.
