GTCO’s HabariPay Achieves Remarkable Growth with N2.3 Billion Profit Before Tax in 2023

GTCO’s HabariPay Achieves Remarkable Growth with N2.3 Billion Profit Before Tax in 2023

In the fast-evolving landscape of financial technology, GTCO’s subsidiary, HabariPay, has emerged as a standout performer, showcasing impressive financial results in its full-year 2023 report. The fintech company, a subsidiary of Guaranty Trust Holding Co Plc, reported a substantial profit before tax of N2.3 billion, marking a remarkable 147.9% growth compared to the previous year’s figures.

The surge in profitability can be attributed to the significant increase in revenue streams witnessed by HabariPay during the period under review. According to the 2023 financial presentation, the company’s gross revenue soared by 218% to N4.905 billion in 2023, up from N1.542 billion in 2022, driven by robust growth across all key income lines.

One of the key drivers of this growth was the substantial increase in income from Value Added Services, which expanded by 149%. This growth was fueled by revenue generated from airtime vending, facilitated by direct integrations with major Telcos and partnerships with VAS aggregators. The company also effectively managed interest expenses arising from monthly overdraft charges on airtime purchases, ensuring a healthy credit balance on its overdraft account at the end of each month.

Transaction volumes on the HabariPay platform witnessed an exponential increase amidst intensifying competition in the fintech sector. The value of transactions surged by a staggering 8,620% to N12.1 billion in 2023 from N139.3 million in the preceding year. Furthermore, the international payment transactions handled by HabariPay also experienced substantial growth, rising from $175,927 in 2022 to $2.3 billion in 2023.

GTCO highlighted that HabariPay is rapidly establishing itself as a dynamic force in the financial technology landscape, embodying innovation and empowerment in the digital economy. The company’s core operations encompass a wide range of services, including a payment gateway that processes payments through virtual accounts, USSD, card, and bank transfer channels. Additionally, HabariPay engages in switching verticals, value-added services such as bill payments for airtime vending, and distribution of bulk SMS through licensed Value Added Service Aggregators regulated by the Nigerian Communications Commission (NCC).

The journey of HabariPay traces back to 2018 when GTCO launched Habari as a super-app offering diverse services from content streaming to e-commerce. Initially, the platform struggled to gain traction among digital users as it deviated from traditional banking services. However, in 2020, GTCO announced a strategic shift towards digital payments, leading to the restructuring of Habari as a separate entity wholly owned by the bank. Subsequently, Guaranty Trust Bank transitioned into a holding company in June 2021, with HabariPay emerging as a standalone business offering payment solutions, a marketplace, and services tailored for small businesses.

HabariPay’s flagship product, Squad, integrates a payment gateway, an e-commerce platform, and a Point-of-Sale system, positioning itself as a competitor to established players in the payment gateway sector such as Interswitch, Paystack, and Flutterwave.

In conclusion, the stellar financial performance of HabariPay in 2023 underscores its growing influence in the fintech industry, backed by innovation, strategic partnerships, and a customer-centric approach. As HabariPay continues to expand its offerings and enhance its market presence, it is poised to shape the future of digital payments and redefine the financial technology landscape in Nigeria and beyond.