FairMoney, the Tiger Global-backed African fintech, is reportedly in merger and acquisition discussions with Shara, a merchant-focused digital banking startup operating in Nigeria and Kenya. The talks, first reported by Condia citing anonymous sources, point to FairMoney’s ambition to deepen its lending business while expanding its regional footprint. Although no final deal has been announced, Shara’s updated terms indicate that customer accounts and personal data are being transferred to FairMoney from April 30, 2026.
FairMoney Eyes Regional Expansion
The potential transaction comes at a time when growth-stage fintechs are under pressure to prove scale, profitability, and market dominance. FairMoney has built a strong lending and digital banking business in Nigeria, but its next phase may require either broader penetration at home or a stronger presence in other African markets. A deal with Shara would offer both, giving FairMoney access to a merchant credit platform and a pathway into Kenya through Shara’s stake in Maisha Microfinance Bank.
Why Shara Matters
Shara operates a credit-led neobank serving small and medium-sized businesses, with operations in Nigeria and Kenya. In 2023, it acquired a 55.8% stake in Maisha MFB, one of Kenya’s licensed microfinance banks, a strategic asset for any fintech seeking regulated market entry. That licence is particularly valuable because Kenyan microfinance banks can support services such as foreign exchange and cross-border remittances, unlike their Nigerian counterparts.
Strategic Fit With FairMoney
FairMoney’s lending business has historically focused more heavily on retail customers, while Shara has developed a merchant loan book serving business users. This makes Shara a potentially complementary acquisition rather than a simple geographic add-on. According to the report, Shara has issued more than 100,000 loans worth over ₦50 billion to around 7,000 businesses, while maintaining profitability in Nigeria.
FairMoney’s Stronger Financial Position
FairMoney appears to be negotiating from a position of relative financial strength. In its 2024 financial year, the company reportedly grew revenue by 62% to ₦121.9 billion and increased net profit more than sevenfold to ₦5.85 billion. Its customer deposits also rose to ₦73 billion, giving the company a cheaper funding base to support its lending operations.
Kenya Becomes a Competitive Prize
The potential Shara deal follows a broader pattern of Nigerian fintechs seeking entry into Kenya through regulated microfinance banks. Moniepoint previously attempted to acquire Kopo Kopo before later buying a 78% stake in Sumac Microfinance Bank, giving it stronger control and a licensed local platform. FairMoney’s interest in Shara suggests that Kenya has become a strategic battleground for well-funded Nigerian fintechs pursuing regional scale.
Deal Value Remains Unclear
The valuation of Shara is likely to be one of the most difficult parts of any transaction. Condia’s analysis suggests that Shara could command a valuation far above distressed fintech assets because it has revenue, a sizable merchant lending business, and no obvious signs of financial distress. Estimates cited in the report place a possible valuation range between $60 million and $80 million, with room for a higher premium if competition intensifies.
Possible Deal Complications
Despite the strategic logic, the transaction may not be straightforward. Shara’s ownership structure in Maisha MFB could create complications because its stake is close to, but not above, thresholds that would provide full control over certain shareholder decisions. That could lengthen negotiations, affect deal terms, or reduce Shara’s negotiating leverage depending on how minority shareholders and regulators respond.
If completed, the acquisition would represent FairMoney’s most significant deal to date and a major step in its evolution from a Nigerian digital lender into a broader African fintech platform. It would also strengthen FairMoney’s merchant finance capabilities while giving it a regulated route into Kenya, where rival fintechs are already moving. More broadly, the talks reflect a likely consolidation wave in African fintech, as profitable and better-capitalised players look to acquire strategic assets in a tighter funding environment.
Source: Condia