CYBERSECURITY : Green button keyboard computer. Double Exposure Effects. Digital Business and Technology Concept.
CYBERSECURITY : Green button keyboard computer. Double Exposure Effects. Digital Business and Technology Concept. (Photo Credit: www.shutterstock.com)

By Staff Writer

Stellenbosch-based FinTech innovator Entersekt has received an undisclosed amount as an investment from AlphaCode and BoE Private Equity Investments.

Rand Merchant Investment Holdings through AlphaCode, RMI’s innovation hub for FinTech entrepreneurs, and Nedbank Private Equity (NPE) through its private equity investment vehicle, BoE Private Equity Investments will each acquire minority stakes in Entersekt.

The money will be used to accelerate their business global expansion, and research and development.

The company has developed world-class push-based authentication and app security technology.

Entersekt’s patented security products protect close to 100 million of transactions monthly while complying with the world’s most stringent regulatory guidelines.

Enterprises across the globe look to Entersekt to strengthen the bond of trust they share with their customers, and to build on those relationships by introducing compelling, user-friendly new mobile and online services.

Entersekt has already secured several large banking clients including Absa, Nedbank, Capitec, Investec, Swisscard, Equity Bank, Ecobank, Pluscard and First Bank of Colorado.

The company has also extended beyond the banking sector providing authentication solutions for Old Mutual among others and has signed reseller agreements in Europe and in the US. Entersekt continues to have a strong sales pipeline.

Mobile authentication is a fast-growing industry that is an enabler of financial services driven by the need to perform riskier transactions more simply without complex authentication processes. Recently a client’s customer processed a $65 million transaction via the mobile using Entersekt’s encryption technology.

“We are immensely honoured that investors of such a high calibre have endorsed our long-term vision in this way,” said Schalk Nolte, Entersekt’s CEO.

“We look forward to working together at a board level to unlock the significant potential we see in the global market. We can now accelerate beyond our very healthy organic growth and rapidly establish a presence in new territories. We have a solid foothold in Africa, Europe and the United States, but our technology can provide as much value to enterprises in other regions. Enterprise-grade security solutions that streamline consumer mobile experiences, meet compliance obligations, and provide a launchpad for innovation have wide and growing applicability.”

All regulatory approvals have been obtained, including the Competition Commission of South Africa.

BoE Private Equity Investments is the investment vehicle for the Nedbank Private Equity business, one of southern Africa’s prominent mid-market private equity investors, with an established track record of successfully investing and partnering with management teams across a diverse range of growth companies and sectors

“Entersekt’s proven success in deploying its unique product offering at leading financial institutions as well as their strategic positioning to take advantage of the global growth in mobile application security and transaction authentication makes Entersekt an appealing investment,” Marthin Greyling, a Principal in the Nedbank Private Equity, says.

“We look forward to partnering with AlphaCode and the existing shareholders to support the company’s global growth aspirations.”

Rand Merchant Investment Holdings also referred to as RMI Holdings, is a JSE-listed investment holding company with an investment team of experienced, alternative thinking financial services specialists who actively partner smart and industry-changing management teams by being a shareholder of influence.

“RMI through AlphaCode seeks investments in next generation FinTech opportunities. We look for high growth businesses that are ready to scale and are led by strong entrepreneurial management teams,”  says Dominique Collett, RMI Senior Investment Executive and head of AlphaCode.

“As RMI has experience of scaling companies globally and as providers of growth capital, we believe that this deal will add value to our portfolio of blue chip investments. It is AlphaCode’s second investment after Merchant Capital, which provides SMEs with working capital finance.”

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