Lagos-based fintech Redtech Ltd has announced an ambitious strategy to expand into 29 African countries by 2027, fueled by explosive growth and a potential $100 million capital raise. The payments company is actively considering mergers and acquisitions to accelerate its continental footprint. This move positions the firm as a key future player in Africa's digital payment infrastructure.
Explosive Growth and Strategic Ambitions
The company's expansion plans follow a remarkable 2025 financial year where it processed $20.6 billion in transactions, more than doubling the previous year's volume. This substantial growth provides a strong foundation for its pan-African aspirations. Redtech aims to leverage this momentum to establish a significant presence across the continent.
Chief Executive Officer Emmanuel Ojo confirmed that inorganic growth is a central component of the company's strategy for scaling rapidly. He stated that acquisitions are "all on the table," indicating a proactive approach to entering new markets. This aggressive stance is designed to fast-track Redtech's journey to becoming a continental force.
A Hybrid Model in a Crowded Market
Redtech operates a diversified business model through its RedPay platform, catering to both small merchants and large enterprise clients. This hybrid approach provides a balanced revenue stream and mitigates risks in a competitive market. It allows the company to build a broad and resilient customer base across different sectors.
In Nigeria's competitive payments sector, Redtech differentiates itself through deep, enterprise-grade system integrations. This focus on robust infrastructure ensures minimal downtime and high reliability for its institutional partners. Such stability is a crucial value proposition in a market where service interruptions impact business operations.
Strengthening Banking Infrastructure
The company is strategically positioning itself to support Nigeria's banking sector ahead of the 2026 recapitalisation deadline. Ojo highlighted the importance of agency banking networks for deposit mobilisation and last-mile financial services. Redtech's infrastructure provides banks with an effective channel to meet regulatory requirements and expand their reach.
A cornerstone of Redtech's strategy is its deep partnership with United Bank for Africa (UBA), for which it serves as a systems integrator. The fintech has already implemented mobile banking solutions for UBA across five West African countries. This collaboration provides a proven model and a strategic pathway for further expansion.
Fueling Pan-African Expansion
Redtech has initiated its cross-border expansion by building payment infrastructure in Francophone markets like Benin, Burkina Faso, and Senegal. The company is prioritizing regulatory compliance and local partnerships to ensure sustainable entry into these new territories. This methodical approach is essential for navigating the continent's diverse legal and business landscapes.
To finance its growth, Redtech is considering raising up to $100 million in private capital over the next two years. This funding will support technological development, market entry, and potential acquisitions. The company also aims to process $73.89 billion annually and deploy over 100,000 POS terminals.
Redtech's bold expansion plan marks its evolution from a domestic success story to an aspiring pan-African payments infrastructure provider. Its future success hinges on executing its hybrid strategy, securing capital, and skillfully navigating the continent's fragmented regulatory landscape. The coming years will be pivotal in determining if Redtech can transform its momentum into sustained continental scale.