Stanbic IBTC to Inject ₦4 Billion into Zest Payments for Fintech Expansion
Stanbic IBTC Holdings Plc, the Nigerian arm of Standard Bank Group, is set to strengthen its fintech subsidiary, Zest Payments Limited, with a ₦4 billion ($2.48 million) capital injection. This move follows the company’s ₦148.71 billion capital-raising initiative.
The funding, which accounts for approximately 3% of the total raised capital, aims to enhance Zest’s competitive edge in Nigeria’s fast-growing fintech space.
“At about 3.6% of ₦148.71 billion, five billion naira will be allocated to recapitalising two subsidiaries,” Kunle Adedeji, Acting CEO and Group CFO of Stanbic IBTC, disclosed during the bank’s rights issue presentation. “Zest Payments will receive ₦4 billion, while ₦1 billion will be directed toward our venture business.”
This development marks a significant boost for Zest, which has struggled to achieve profitability since launch. In 2023, Zest Payments Limited—formerly known as Stanbic IBTC Financial Services reported a ₦1.2 billion loss, with a total income of only ₦68 million.
Unlike traditional fintech firms operating as payment switches, Zest focuses on payments and e-commerce, leveraging its banking group’s extensive business network. The fintech’s core offering revolves around digital commerce, enabling businesses to set up online sales channels.
Its platform supports customizable product listings and integrates various payment options, including QR codes, USSD, card payments, and bank transfers. Additionally, the fintech holds a Value-Added Service (VAS) aggregator license for bill payments and a payment license. “We currently have 25,000 products on our marketplace,” Jacob added.
With this fresh capital infusion, Zest Payments aims to accelerate its growth and establish itself as a formidable player in Nigeria’s evolving fintech ecosystem.
