[Transcript] #62: DPO Group - How the FinTech payments platform went from bootstrapping for 8+ years to strategically acquiring multiple companies, and exiting to Network International for $288M
Transcript for podcast originally recorded in March 2023
😉 In January 2023, we explored the story of DPO Group, which was established in 2006 in Kenya as an online payment solutions provider, initially targeting the airline industry. The company gradually broadened its service portfolio to include comprehensive payment solutions across various sectors, focusing on enhancing e-commerce in Africa.
Their strategy for products and monetization involved offering secure and efficient payment processing services, generating revenue through transaction fees and additional value-added services. DPO Group's competitive edge came from its in-depth understanding of the African market, which allowed it to address regional payment challenges effectively.
This strong market position culminated in the company's acquisition by Network International in 2021, marking a notable exit and integrating their expertise into a larger global payment network.
Companies discussed: DPO Group, Network International, Apis partners, Flutterwave, Paystack, Interswitch, Safaricom, MTN, Airtel, Takealot.com, Superbalist.com, Safaricom, Yoco, PayPal & Chipper Cash
Business concepts discussed: Bootstrapping, Payments ecosystem, payments partnerships strategy, payments infrastructure, low-end disruption, banking regulation, Mobile Money, E-commerce payments, Virtual cards & payments M&A strategy
Enjoy!
Olumide Ogunsanwo
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Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today we're gonna talk about DPO Group. We'll explore their story across the following areas: (1) African payments context, (2) DPO group's early history, (3) Product & monetization strategy, (4) Competitive positioning and exit & (5) Overall outlook.
This episode was recorded on March 5th, 2023. What is DPO Group? In corporate speak, it is a payments platform that allows merchants get paid by shoppers around the world in their currency of choice..
[00:00:47] Bankole Makanju: They're also one of the companies that someone actually bought. They had an actual exit. They built a business and sold it to somebody that wanted it.
[00:01:00] Olumide Ogunsanwo: DPO Group is a payment gateway platform founded in 2006 that allows merchants around the world to process digital payments from Africa. They primarily started with airlines, but now they serve as a whole bunch of industries. They started in Kenya, but now they have a lot of people in South Africa, so they're a big deal. I also wanna talk about the exit that, yeah,
[00:01:21] Bankole Makanju: That was very common. There were a couple of startups in Nigeria 2009, 2010 Slim Trader that really started processing payments for airlines as well because there was a very big way in Lagos now in Nigeria now everybody, participants for hospitality because they were the ones that saw payment volume 2009, 2007, it was airlines that had payment volume. Digital payment volume at least.
[00:01:40] Olumide Ogunsanwo:. They exited for ~$288M-$300M in the middle of 2020 when the world was ending covid we'll talk about that. Birth growth, eventual exit. Bankole, anything else you wanna say before we do the public service announcements?