FinTech player Zeepay has secured R112 million or $7.9 million in funding from Verdant Capital, a specialist investment bank and investment manager operating on a pan-African basis.
Zeepay is a pioneer of digital remittances from the diaspora to mobile wallets, bank accounts and visa cards across 20 markets in Africa, where it either operates a mobile money business or has approved partnerships.
The business is successfully transitioning into integrated omnichannel digital payments and value-added financial services provider operating across the continent.
Verdant Capital positioned Zeepay’s $7.9 million equity and debt raise as Series A.0.
Zeepay, prior to the fundraise, had efficiently deployed a total of about $450,000 or R6.4 million since its go-to-market in May 2016 to achieve a cumulative average growth rate of about 146 percent in the following five years.
Zeepay has achieved this growth rate while maintaining operating profitability and reinvesting the profits.
In Verdant Capital’s view, Zeepay has the potential to transform how Africans implement payments across borders and domestically; and how these payments are integrated into value-added services such as credit and insurance.
Zeepay has built a formidable market position in its anchor market of Ghana, which it is now replicating in synergistic markets across the continent.
Verdant Capital expects this strategy to continue driving rapid revenue growth, profitability and financial inclusion.
The debt and equity raise for leading challenger fintech, Zeepay, head-quartered in Ghana, follows a $20 million or R284 million equity and debt capital raise for Tugende, an East African technology-enabled asset financing business, an $11 million or R156 million debt capital raise for Retail Capital a technology-driven SME-lender in South Africa, and a $13 million or R184 million equity and debt raise for Planet42 an innovative car subscription business in South Africa.
Verdant Capital has an exceptional track record across the continent, having raised over $250 million or R3.5 billion in private debt and equity for inclusive financial institutions and “fintech” companies since 2017.