V Bank was officially launched in March 2020, quickly gaining popularity and traction in the Nigerian financial landscape, a popularity that came from offering zero maintenance fees and competitive interest rates.
Vscreens. Image Credits: V Bank
VFD Group Plc has injected $3.3 million in funding into its Fintech arm, V Bank, baring its fintech ambition before all. This investment is a signal of the company’s long-standing plans to expand its digital footprint and strengthen its foothold in the Nigerian financial services industry.
V Bank was officially launched in March 2020, quickly gaining popularity and traction in the Nigerian financial landscape, a popularity that came from offering zero maintenance fees and competitive interest rates. At the moment V Bank boasts of over 500,000 active users. This fresh injection of capital will help it solidify its position in the Nigerian financial market, broaden its customer base, come up with innovative financial products, and enhance its digital banking experience.
VFD Group confirmed that its board has sanctioned the $3.3 million (N5 billion) investment in V Bank during an official filing with the Nigeria Exchange. The group made it clear that the capital infusion is targeted at accelerating V Bank’s growth, enhancing its technological infrastructure, and expanding its suite of financial services.
Nonso Okpala, Group Managing Director of VFD Group, explained the group’s reason for the investment : “Our N5 billion commitment to V Bank reflects our confidence in its growth potential and aligns with our vision of deepening financial inclusion in Nigeria. V Bank is not just a microfinance institution; it plays a crucial role in the digital financial ecosystem, and we are determined to scale its reach and operational efficiency.”
According to Rotimi Awofisibe, Managing Director of V Bank: “This funding will enable us to strengthen our technological capabilities, introduce new offerings, and improve customer experience. VFD Group’s backing positions us for accelerated growth, allowing us to serve more Nigerians with efficient and accessible financial solutions.”
This move falls in line with a long-running trend of financial institutions venturing into fintech expansion. VFD Group’s move is mirrored in Stanbic IBTC’s decision to allocate $2.6 million to its fintech subsidiary, Zest. This continuing trend reflects the increasing investment focus on digital banking solutions in Nigeria.
The N5 billion investment comes off the back of VFD Group’s divestment of a controlling stake in Atiat Limited for $4.6 million. This represented a strategic reallocation of capital from traditional finance sectors to fintech. Atiat Limited, which remains active in leasing, consumer lending, and bridge financing, plans to extend its reach into banking and insurance.
Following the investment announcement, VFD Group’s share price dropped 10% week-on-week on the Nigerian Exchange, falling from $0.38 to $0.34. This decline was primarily driven by early-week sell pressure, during which approximately 614,000 shares changed hands. Despite this initial volatility, the stock remained steady at $0.34 for the rest of the trading session, bringing VFD Group’s market capitalisation to $44 million.
