Why We Invested in Opareta: Fintech SaaS Driving Efficiencies in Mobile Money Agent Networks

The mobile money revolution has fundamentally reshaped financial services in Africa, spurred by rising mobile phone ownership and led by major operators like Safaricom, MTN, and Airtel. This digital access relies entirely on a vast, informal network of agents who provide essential Cash-In and Cash-Out services - the last mile of distribution.

Today, a staggering 5.1 million agents enable the transaction of nearly $1.0 trillion in payments annually.

However, this critical system is burdened by significant inefficiencies. Super Agents (who manage these networks) often operate inefficiently, despite absorbing 10-20% of all transaction fees. They struggle to address agents' chronic liquidity constraints (a liquidity gap estimated at $80 billion), manage fraud risk, and simplify cumbersome onboarding processes. These challenges translate into high transaction failure rates (more than 20%) and an agent churn rate of 75%, stifling further innovation in the mobile money ecosystem.

WHAT DOES OPARETA DO?

Opareta offers a comprehensive suite of digital tools designed to solve the challenges faced by all stakeholders across the mobile money value chain - from the largest mobile money operators (MMOs) to the last-mile agents.

For Telcos and Super Agents:

Opareta provides a powerful platform for analytics, fraud detection, agent network management, float/cash reconciliation, and performance monitoring. This ensures effective oversight and management over the entire value chain. Field teams gain data-driven capabilities for agent network monitoring, route optimization, and inventory management.

For Agents:

Opareta provides a dedicated mobile app that allows agents to manage all theiroperations efficiently, access liquidity, and utilize embedded financial products such as credit in the form of float loans. Agents use the app for essential services like Cash-In/Cash-Out, airtime purchases, and bill payments.Once Opareta is integrated into the MMO or Super Agent’s systems, the agents intheir network can be seamlessly onboarded.

WHY WE INVESTED IN OPARETA

1. Outstanding Founder

Michael Schwartz (Founder & CEO) is a proven leader with a strong "growth mindset," adept at adapting and improving commercial strategy as he scales the business. His prior experience in raising both debt and equity, coupled with his ability to establish a strong senior team with expertise across technology, product, and operations, makes him the ideal person to tackle this complex, continental challenge.

2.Strategic Partnership and Go-to-Market Strategy

Opareta has established an impressive sales and business development pipeline. They have already secured direct partnerships with telcos and contracts with Super Agents across multiple markets. By positioning themselves as a complementary player to all stakeholders, they are able to rapidly integrate. They have a credible plan for graduating to direct partnerships with telcos across the major mobile money markets on the continent.

3.Attractive Market Dynamics and Value Proposition

The market potential is immense, given that the number of mobile money agents is projected to continue growing. Furthermore, the industry is trending toward distribution opening among MMOs, as major telcos spin off their fintech businesses and continue to outsource distribution.

Opareta's innovative product is a unified platform that serves all users along the mobile money value chain, giving it a strong value proposition where most competitors offer solutions addressing only a specific subset of challenges. Opareta drives both revenue upside and cost reduction opportunities for telcos and Super Agents, creating clear economic value across the network.