MFS Africa raises more capital to bring its Series C to $200 million

by MMC
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Image credits: MFS Africa

Pan-African digital payments network MFS Africa has raised $100 million in equity and debt, additional funding that brings its Series C round to $200 million. African investment manager Admaius Capital Partners led the new round.

Investors from its first Series C round such as AfricInvest FIVE and CommerzVentures doubled their stake while the fintech also received capital from new investors: Vitruvian Partners and AXA Investment Managers. Debt financing came from Stanbic IBTC Bank, a Lagos-based bank, and Symbiotic.

According to the MFS Africa press release, this new investment will allow it to achieve four objectives. First, continue its expansion plans across Africa. It will also help it further integrate into the global digital payments ecosystem, then expand into Asia and create cross-border payments synergies with Africa through a joint venture with LUN Partners and, finally, to realize his growth plans for BAXI, a startup he acquired. at the end of last year.

These plans reflect what founder and CEO Dare Okoudjou told TechCrunch last November when the company announced its first $100 million slice. At the time, the Baxi acquisition was still awaiting approval from the Central Bank of Nigeria, the country’s central bank. Not only was the purchase approved, but BAXI now has two licenses to operate in the country: the Payment Service Solution Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses. The PSSP license allows BAXI to create gateways that process payments for third-party merchants, and the PTSP license gives BAXI the green light to deploy its point-of-sale terminals for branch banking.

MFS Africa, known for its expansion plans through acquisitions, last week acquired US-based Global Technology Partners (GTP) in a cash and stock deal worth $34 million. The London-based, Africa-focused company connects over 320 million mobile money wallets across over 35 African countries and 700 corridors. But despite these cross-border connections, millions of Africans cannot use their mobile money accounts to pay for subscription services run by international companies such as Netflix and Amazon.

GTP is a developer of prepaid and mobile payment software. According to Presentation book, its prepaid and mobile payments platform integrates multiple prepaid cards with a single bank account and allows users to make prepaid payments for online and ATM purchases. The acquisition gives MFS Africa the ability to issue prepaid cards to its customers so they can perform these tasks – and also serve the African diaspora market in the United States.

“The strength of our economic model lies in building a sustainable digital infrastructure that liberates and simplifies economic activities across the continent through interoperability from all sides,” Okoudjou said in a statement. “Our multiple initiatives and solutions provide access to Africans, at home and in the diaspora. We are building MFS Africa into a secure, robust, scalable and high-impact pan-African payments infrastructure that will facilitate the rapid growth of commerce in Africa, now and in the future.

The fintech also highlighted its efforts to hire two people to plan its next phase of growth: Meghan Taylor, ex-partner at the Boston Consulting Group, who is now its chief of staff, and Julian Adkins, ex-CFO Africa at the telecommunications operator Millicom. , who serves as the company’s group financial director.

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