- Upon a $600 million takeover by the new Chinese owners in 2016, Opera has shifted its focus to emerging fintech opportunities in Africa and Asia.
- Both owners have core competencies in the emerging market, having successfully launched two unicorns in China. We believe that Opera can crack Africa's market potentials.
- Opera grew ~94% in 2019, upon launching its fintech offering in Africa. The fitting approach and business model should allow Opera to sustain its growth.
Opera (NASDAQ:OPRA) is one of the most interesting turnaround growth stories we have come across. Driven by the ambitious vision of the new Chinese owners, it went from being a less successful browser maker to being a fast-growing microfinancing lender in Africa and Asia. Over the last year alone, revenue doubled to ~$335 million upon the launch of the fintech unit in Kenya and India. In this note, we take a closer look at Opera's new Chinese owners' motivation and the micro-financing business potentials in these emerging markets, which we think offer a uniquely attractive long-term outlook.