Airtel Money plans London IPO to list fintech unit

Airtel Money, the mobile-payments arm of Bharti Airtel, plans an initial public offering on the London Stock Exchange to list its fintech operations.

The proposed offering would separate Airtel Money from its parent and open the unit to public investors in the UK. Company officials have begun preparing regulatory filings and engaging international banks and advisors to structure the potential float.

The fintech unit provides mobile wallets, person-to-person transfers, bill payments and merchant acceptance across several countries in Africa and Asia. The company intends to use proceeds to expand digital payments, merchant services and credit products, and to support product development and customer acquisition.

Barclays and other international banks are being courted to manage the process. The firm plans to seek approvals from regulators in the jurisdictions where it operates before finalising the offer. Discussions under way cover the share structure, the size of the float and whether the listing will be a full separation or a partial spin-off with Bharti Airtel retaining a stake.

A London listing would give Airtel Money access to a broad pool of institutional investors with experience in emerging-market telecom and fintech assets. Analysts expect investor materials to focus on user growth, transaction volumes and routes to profitability.

Airtel has expanded partnerships with banks, payment processors and merchants to broaden acceptance of its wallet and payments infrastructure. The unit’s services range from airtime top-ups and utility payments to merchant settlements and small-business collections. Management describes financial inclusion and increased digital payments penetration as long-term drivers of the business.

Mobile-money platforms have grown rapidly in many emerging markets as smartphone adoption and internet access rise. Telecom companies that operate payment platforms have increasingly separated or monetised those businesses through partnerships, sales or public listings. London remains a common venue for listings by companies with large emerging-market operations because of its deep capital markets and investor base familiar with frontier and developing-market risk.