Wave Secures $137 Million to Expand Financial Services in West Africa

Wave, a Senegal-based mobile money platform, has successfully secured $137 million in debt financing. This funding round was led by Rand Merchant Bank (RMB) and supported by a consortium of global development finance institutions, including British International Investment (BII), Finnfund, and Norfund. The primary objective of this capital infusion is to enhance the affordability and accessibility of financial services for users across West Africa.

Founded in 2018 by Drew Durbin and Lincoln Quirkmet, Wave has rapidly expanded its reach, now boasting over 150,000 agents and 3,000 employees. The platform serves more than 29 million active users monthly across eight West African markets. The latest funding will be instrumental in bolstering Wave's working capital and extending its financial services to underserved communities.

Drew Durbin, CEO of Wave, expressed his enthusiasm about the funding, stating, "We started Wave to make financial services radically more affordable and accessible. I’m thrilled about this funding, it means we can help even more people by delivering the best possible product at the lowest possible price." This sentiment underscores Wave's commitment to providing inclusive financial infrastructure that serves everyone, particularly those traditionally excluded from formal banking systems.

Wave's mobile-first model, characterized by affordable fees, consistent customer service, and innovative designs, has been a significant draw for users who are often excluded from formal financial services. The investment marks a pivotal moment for the startup and the broader mobile money sector in Africa. Coura Sene, Regional Director and Head of Public Affairs at Wave, highlighted the growing confidence in their model and mission, emphasizing the importance of building financial infrastructure that is inclusive and accessible to all.

RMB, which led the financing round, praised the collaboration as a testament to supporting innovative businesses that are transforming lives and economies. The investment is expected to enable Wave to scale its operations and deepen its impact in key markets such as Senegal and Côte d’Ivoire. Sibusiso Tashe, Co-Head of Leveraged Finance at RMB, noted, "At RMB, we are proud to lead this landmark financing round for Wave, which is redefining financial inclusion across Africa. This collaboration is a testament to the power of strategic capital in unlocking inclusive growth across the continent."

Wave's journey to becoming Africa’s fastest-growing mobile money platform has been marked by significant milestones. In 2021, the company achieved unicorn status with a $200 million Series A funding round, becoming Francophone Africa’s first unicorn. The following year, Wave was recognized as the only African company among the 50 companies on the Y Combinator list of companies that generated the highest revenue for the year, sharing this distinction with prominent global companies.

Before launching Wave, the founders first established Sendwave in 2012 to address the high fees associated with international money transfers to Africa. Recognizing the challenges of domestic mobile money in Africa, they realized the need for a better mobile money platform. In 2021, they sold Sendwave to WorldRemit for $500 million and focused on building Wave. The platform offers a peer-to-peer money transfer service that leverages mobile money accounts instead of traditional bank accounts, allowing customers to make deposits and withdrawals at physical agent locations without incurring any fees.

Wave's innovative approach includes allowing users to settle bills without additional charges and offering instant airtime purchases. The company also provides users who lack access to smartphones with a complimentary QR card, facilitating transactions with agents who can establish accounts, accept deposits, and process withdrawals. This has been particularly impactful in major markets such as Côte d’Ivoire, Senegal, and Gambia, where Wave has promoted financial services by ensuring low-cost transfers and bill payments are accessible to low-income populations, thereby boosting financial inclusion. The company's growth has also been deepened by strategic partnerships with local regulators, government, and financial institutions.