Interswitch Revenues Increased 23% to N66.5bn in 2023

Interswitch Holdings Limited, a Nigerian payments firm grew its consolidated revenue for the 2023 financial year by 23 percent. Pretax profit hit N12.27 billion up 15.4% in the period, from N10.6 billion recorded in the prior year, according to financials.

Revenue was led by the Digital Payment segment (N46.8 billion), which grew 30% in the year, partly reflecting market share growth for the Verve debit card scheme. Digital Ecosystem and Enablement revenue came in at N15.3 billion, while Digital Commerce and Inclusion was N4.42 billion.

Gross margin expanded from 88% to 89% reflecting a higher proportion of transaction revenue in the product mix due to the impact of cashless policy of the CBN.

EBITDA was N22.4 billion in the 2023 Full Year (FY) period compared to N19.4 billion in the prior year. The Group reported a profit after tax of N5.63 billion and N6.42 billion in the year 2023 and 2022 respectively.

Interswitch’s total assets grew to N100.3 billion in 2023 from N76.6 billion partly reflecting the profitability of the Group and investment made by new shareholders during the year.

Total liabilities stood at N59.7 billion compared to N50.9 billion in the prior year, of which N24.5 billion is related to long-term borrowing through the issue of a 7-year tenor public bond in October 2019.

Interswitch Holdings Limited was incorporated on 13 August 2019 as a private company limited by shares. Interswitch Holdings acquired 100% of the shares of Interswitch Limited on 5 November 2019 via a share exchange agreement as part of the Group reorganization exercise.

Ignite Holdco Limited is the principal shareholder in Interswitch Holdings Limited and held 51.64% of the issued share capital of the Company as at 2023. Visa held 19.37%, Peridot Inclusion Pte Ltd held 14.57%. Other shares of the Company are principally held by Nigerian investors.

Nigeria represents 94% of Group’s revenue.