Nigeria-based business banking startup Moniepoint is reportedly set to acquire Rwandan neobank Payday in a cash-plus-equity deal priced under $40 million, according to a WeeTracker report.

The deal was apparently agreed in principle during the closing of Payday's oversubscribed $3 million seed round, which saw participation from existing and new local and global investors.

The acquisition is expected to be finalised by the end of Q2 2023, with finer details currently being ironed out.

Payday has raised over $5 million since its founding, with Ingressive Capital Fund II, Techstars, and HoaQ among its backers. Payday's founder and CEO, Favour Ori, reportedly declined to comment on the acquisition, or whether the company had turned down a similar offer from an African unicorn.

Moniepoint's acquisition of Payday represents a boost to Africa's tech landscape at a time when funding has slowed and talk of returns has surfaced. The deal also suggests an uptick in local capital participation in African tech in recent years.

Techloy could not authoritatively confirm this story.