Stanbic IBTC Holdings Plc, the Nigerian arm of Standard Bank Group, is set to recapitalise its fintech subsidiary, Zest Payments Limited, with ₦4 billion ($2.48 million). This investment is part of a broader ₦148.71 billion capital-raising exercise aimed at strengthening the bank’s subsidiaries and positioning them for long-term growth in Nigeria’s competitive fintech market.
“Around 3.6% of ₦148.71 billion, which is five billion naira, will be used to recapitalise two subsidiaries,” said Kunle Adedeji, Acting CEO and Group CFO of Stanbic IBTC, during the bank’s recent rights issue investor presentation. “Zest Payments will receive about four billion naira, while one billion will go to our venture business.”
A Much-Needed Boost for Zest Payments
This funding injection is a welcome development for Zest, which has struggled to gain a foothold in Nigeria’s fast-growing fintech sector. Launched in May 2023, the company has lagged behind competitors like GTCO’s HabariPay and Access Holdings’ Hydrogen. Unlike Hydrogen, which turned a profit in its second year, Zest has yet to achieve profitability.
In 2023, Zest Payments—formerly known as Stanbic IBTC Financial Services—reported a loss of ₦1.2 billion, with total income reaching only ₦68 million. Losses deepened in 2024, climbing to ₦1.89 billion by September, despite an increase in income to ₦93 million. The company’s full-year financials for 2024 are yet to be released.
“The likes of Hydrogen and HabariPay are 18 months older than Zest,” CEO Stanley Jacob told Condia, emphasizing that Zest’s true operational year began on October 4, 2023.
Zest’s Unique Strategy: Payments and E-Commerce
Unlike traditional fintech firms that focus on digital switching, Zest is positioning itself as a payments and e-commerce enabler, leveraging its banking group’s extensive business relationships.
“Zest is not a switch, like other fintechs. Our strategy is payments and e-commerce because our banking group supports lots of businesses. Essentially, our fintech is primarily catered to them,” Jacob explained.
Zest offers businesses a digital marketplace with customizable product listings and integrated payment solutions, including QR codes, USSD, card payments, and bank transfers. The fintech also holds a Value-Added Service (VAS) aggregator license, enabling it to facilitate bill payments alongside its core payment offerings. “We have 25,000 products on our marketplace,” Jacob noted.
Positioning for Future Growth
Despite initial financial struggles, Stanbic IBTC’s recapitalization signals renewed confidence in Zest’s potential. The investment will enable the fintech to expand its offerings, improve its infrastructure, and compete more effectively in Nigeria’s evolving financial ecosystem.
As the fintech space becomes increasingly competitive, Zest’s ability to differentiate itself through integrated payments and e-commerce solutions will be critical in driving adoption and achieving long-term profitability.
With this latest capital injection, Stanbic IBTC is reaffirming its fintech ambitions, ensuring that Zest Payments is well-equipped to compete in Nigeria’s dynamic digital economy.