Entersekt, the financial authentication company, has announced that PAPE Fund 3 has expanded its investment in the company.
Initially investing in July 2022, PAPE Fund 3 recently acquired Nedbank Private Equity’s stake in Entersekt, thereby increasing its total investment and ownership. Nedbank Private Equity operates under Nedbank Corporate and Investment Banking.
PAPE Fund 3, a R1.06 billion private equity fund fully dedicated to South African mid-cap unlisted businesses with international growth, originally invested in Entersekt International in July 2022.
Managed by PAPE Fund Managers, a Level-1 rated Black Empowered fund manager, PAPE Fund 3’s investment has bolstered Entersekt’s BEE credentials.
“We are very excited about Entersekt’s potential to grow from being a South African tech company into an internationally recognised enterprise with a presence in the USA, Europe, the Nordics, Pakistan, and the Philippines,” Dr Zuko Kubukeli, PAPE Fund Manager’s CEO, said.
“This is a great South African success story, and we are delighted that PAPE Fund 3 and its investors are now firmly part of the journey.”
Entersekt is one of the leading providers of financial fraud prevention and payment security solutions.
It has accelerated its global growth over the past year:
- In December 2023, in one of the largest transactions ever by a South African fintech company, Entersekt announced it had acquired the Modirum 3-D Secure software business from Modirum, a security technology firm based in Helsinki, Finland.
- Entersekt secures over 2.5 billion transactions per year for over 850 financial institution clients globally, giving it a compelling global footprint and a clear technology advantage of a solution spanning across digital, payment, and data channels of issuers, acquirers, and merchants.
- Most recently, Entersekt was highlighted as a partner of Mastercard’s in their Scam Protect announcement, a suite of specialised solutions powered by cutting-edge AI technologies, which help identify and prevent fraud and financial scams.
“PAPE has been a valuable investor and advisor to Entersekt since their initial investment in 2022,” added Mr Schalk Nolte, CEO of Entersekt. “Their expanded investment is evidence of their confidence in our business and the tremendous growth opportunities ahead. Nedbank has also played a significant role in aiding our progress, as both an investor and a customer. While they are transitioning from an equity holder, they remain a valued client, providing us with great insights into the needs of the market.”
“Nedbank Private Equity has been invested in Entersekt since 2013, and it’s been remarkable to have walked this journey together and witness the evolution of the business and all its achievements” said Amir Regev, Principal: Private Equity at Nedbank CIB. “From Nedbank being one of Entersekt’s first customers to now servicing hundreds of customers globally, it is a testament to the quality of the management team and their innovative solutions. I am confident that Entersekt will continue to thrive and redefine the boundaries of what is possible.”
