Stanbic IBTC fintech unit Zest to get N4bn in fresh capital as losses widen

By Joseph Olaoluwa

Stanbic IBTC Holdings Plc, a midsize lender in Nigeria, plans to recapitalise its fintech subsidiary, Zest Payments Limited, with N4 billion following a N148.71 billion capital raising exercise.

The move comes as the subsidiary struggles to turn a profit in the competitive Nigerian fintech market. Zest posted a loss of N1.89 billion in the first nine months of last year, compared to N1.2 billion for the whole of 2023.

“Around 3.6% of N148.71 billion, which is N5 billion, will be used to recapitalise two subsidiaries,” Kunle Adedeji, acting CEO and group chief financial officer at Stanbic IBTC, said at a recent investor presentation during the bank’s rights issue. “Zest Payments will get about N4 billion while N1 billion will be given to our venture business.”

Zest’s core offering is electronic commerce designed to help businesses establish online sales channels. The platform features customisable product listings, integrating various payment solutions including QR codes, USSD, Card payments and Bank transfers. The fintech also has a Value Added Service aggregator licence for facilitating bill payments and a payment licence.