Barely a week after acquiring US-based Global Technology Partner (GTP), Africa’s largest digital payment network, MFS Africa, has raised an additional equity and debt funding of $100 million.
The funding, which is an extension of its Series C funding round, doubles the funds raised in its initial Series C, raking in a total of $200 million.
The extension round was led by African investment manager – Admaius Capital Partners. Further participations also came from investment firms like Vitruvian Partners, and AXA Investment Manager.
The debt financing part of the funding round was spearhead by Stanbic IBTC Bank, and Symbiotic. Existing investors like AfricInvest FIVE and Commerz Ventures, also increased their investments.
The company emphasized that it will use the funding to facilitate its expansion outside the shores of Africa, and into markets in Asia, through its joint venture with LUN Partners. This is expected to enable cross-border digital payments between people residing in Africa and China.
The company will also use the funds to push its growth plans for BAXI, a firm it acquired in November, 2021.
“The new funding will further accelerate MFS Africa’s expansion plans across Africa, its integration into the global digital payment ecosystem, its expansion into Asia through its joint venture with LUN Partners to enable cross-border digital payments between Africa and China, and its ambitious growth plans for the BAXI network of merchants and agents in Nigeria and beyond,” MFS Africa’s statement reads.
MFS Africa was founded in 2009 by Dare Okoudjou, who also doubles as the CEO. The company raised a $100m Series C last November: which splits at $70m equity funding, and $30m debt financing.
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Speaking on the fundraise, the CEO said:
“With this US$100 million extension of our Series C fundraise we are thrilled to have the support of world-class investors Admaius, Vitruvian and AXA IM Alts, and for the continued support of existing investors, on our journey to making borders matter less when it comes to payments. The strength of our business model is grounded on building a lasting digital infrastructure that unleashes and simplifies economic activities across the continent through any-to-any interoperability. Our multiple initiatives and solutions are providing access to Africans, at home and in the diaspora. We are building MFS Africa into a safe, sound, scalable and high impact pan-African payment infrastructure that will facilitate Africa’s rapidly growing commerce, both now and in the future.”
In a move to push its global expansion, MFS Africa acquired U.S.-based Global Technology Partners (GTP) in a deal that cost $34 million. The company also points that it is working on setting interoperability between payment networks in Asia and Africa, starting from Nigeria.