Nigerian fintech company, TeamApt, has raised $50m in its latest financing round. The company, which offers payment services via its products – Monnify, Moniepoint, said it will use the newly raised funds to boost its credit offering, and help individuals and businesses access credit facilities.
The investment round was led by QED Investors (a firm that focuses on fintech companies in the United States). The round also had participations from investment firms like Novastar Ventures, Lightrock, and BII. Novastar Ventures participated in TeamApt’s Series B investment round, last year, where $30 million was raised.
TeamApt had initially planned to raise its series C this year, however, the company has not expressly confirmed whether this financing round is the anticipated series C. In the light of this, it can be assumed that TeamApt has just concluded a pre-series C funding round, which was led by a company that focuses on US-based companies.
QED, the leading investor, had recently raised about $1.05 billion in its 7th investment round. The company, with its $5 billion assets, has invested in 180 companies, out of which 27 have crossed the unicorn line.
In what was confirmed as QED’s move to transform itself from a VC firm focusing on the US to a global fintech-focused investment firm, the company recently broke its conventional cycle, and hired Gbenga Ajayi, and Chidinma “Chid” Iwueke to lead its investments in Africa.
Speaking on QED’s investment in TeamApt, Gbenga Ajayi, QED Head of Africa, said:
“I am proud to bring Africa to QED and QED to Africa. I could not think of a better way to enter the continent than with our investment in TeamApt. Tosin and his team have steadily built an impressive payment and distribution network across Nigeria over the past five years. Their strong and positive unit economics, coupled with a deep customer focus, will enable them to continue to build out an even more expansive network.”
TeamApt has grown to become one of Africa’s biggest fintech companies. It went from bootstrapping for four years, to recording $100 million in annual revenue, and having a 300% annual growth.
“From our bootstrapping days, we built products where we can see positive unit economics from day one, which has continued to be reflected in our profitability […] This has put us in the realm of the few attractive cash-flow-positive hyper-growth companies — even as we continue growing at triple digits year-on-year, while at the same time expanding our margins,” the CEO, Tosin Eniolorunda, said.
TeamApt has completed over $100 billion in transaction through Moniepoint and Monnify – two of its products. The company also serves over 400,000 SMEs across Nigeria, providing them with services that gives them access to working capital, business expansion loans and business management tools such as expense management (business payments cards), accounting and bookkeeping solutions and insurance.
TeamApt claims that it’s African expansion plan is still in play, and will be kick-started in the coming months.