Knowledge

Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa.

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Date: 27 October 2021

MFS Africa is acquiring Baxi to expand its network into Nigeria, Africa’s largest economy and perhaps its most fintech dynamic market.  Nigeria is also the largest remittance market in Africa representing one-third of intra-Africa remittance flows, and is home to the largest number of SMEs.  Verdant Capital views the two businesses as highly complimentary:  Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omni-channel distribution network; MFS Africa simplifies cross-border payments, integrating payments via one hub.  The transaction further extends Verdant Capital’s track-record of advising on transactions shaping the fintech sector in Africa.  […]

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Finclusion, a leading fintech in Southern and Eastern Africa, launches Click2Pay.

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Date: 31 July 2021

Finclusion, a leading fintech in Southern and Eastern Africa, has launched Click2Pay, a buy now, pay later (“BNPL”) business model supporting SMEs and other businesses in South Africa.  Traditional credit-card payment is a system that desperately needs innovation as more and more consumers are opting out of interest-heavy purchases. This is pushing South African businesses to find solutions to attract and retain customers, such as the BNPL model. As the pandemic continues to reshape customers’ payments expectations, as well as providing a further spur to e-commerce volumes overall, BNPL is expected to play a vital role, offering a flexible alternative […]

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Zeepay Ghana acquires Zambia mobile money operator Mangwee

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Date: 4 May 2021

Zeepay, the leading African challenger fintech with operations in over 10 African countries, acquired a 51 percent stake in Mangwee Mobile Money Zambia. The stake was acquired through a new issuance of shares. Mangwee started operations in 2018, and was initially set up to operate as an alternative wallet targeting university students in Zambia with the aim of driving the cost of mobile money services downward. Zeepay is the leading African challenger fintech with active operations in over 10 African countries. The company specializes in paying remittances into mobile money wallets across Africa and is regulated by both the Bank […]

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Tugende launches boat engine financing, further strengthening its product portfolio

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Date: 4 May 2021

Since launching its business in 2012, Tugende has consistently delivered strong growth while maintaining industry-leading portfolio quality. Tugende is a technology-driven innovative financial services company providing financing of productive assets and related services to its clients, including to family members. Although the business was originally focused on one product, motorcycle taxis, in one country, Uganda, the company launched its Kenyan operations 18 months ago and is successfully scaling its business in that market. To enhance its growth profile, Tugende conducts a diligent product development process that screens assets that have a latent demand for credit from MSMEs, runs a pilot […]

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Verdant Capital supports USD 9.9 M Series A equity capital raise for Tugende, a leading technology enabled MSME lender in East Africa.

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Date: 31 March 2021

Tugende, a leading technology enabled MSME lender in East Africa, has closed an additional round of USD 3.6 million equity funding bringing the total amount raised in its Series A equity financing to USD 9.9 million. The latest round was led by Partech Africa, a member of the Partech Group and a leading global technology venture capital fund, and Enza Capital, an early-stage venture capital fund that focuses on partnering with founders and management teams that leverage technology in scaling their business while solving social issues. This round is complementary to the first round led by Mobility 54, the Africa-focused venture […]

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Verdant Capital was awarded Best Fintech Capital Raising Team in Africa by cfi.co in its Q1 2021 business and finance awards.

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Date: 31 March 2021

Verdant Capital won the award in a period of record deal volumes in Africa, with some USD 500 million of capital raising and M&A in the Fintech sector in 2020. Verdant Capital successfully completed transactions in the sector in 2020 with a total value of USD 40 million. The capital raises included businesses such as Tugende, a leading technology enabled MSME lender in East Africa, Retail Capital, South Africa’s Leading SME-credit tech player, and Planet42, the first mover in the South African socially-inclusive car-subscription market. The transactions were notable both for the commercial success of the businesses and their broad-based […]

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Investing in African Fintech

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Date: 2 March 2021

In February, Edmund Higenbottam discussed the increasingly broad opportunities for investors in Africa’s fintech sector with African Business. The podcast coincided with the UK-Africa Fintech Summit on February 3-4, 2021. The podcast discussed key recent developments driving investor interest, including the accelerated digitization of the financial services hierarchy, dating back to the launch of M-Pesa in Kenya in 2007. Payments is a natural starting point for digitization, given the lower risk and easier adoption as a platform. Even within payments, there has been layers of advancement; for example, Capricorn Digital of Nigeria has advanced its business model from payment of […]

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Africa – The Fintech Fulcrum Between East and West

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Date: 3 February 2021

Africa is currently home to just under 500 Fintech firms¹, with South Africa, Nigeria, and Kenya at the forefront of startup activity. So, what makes the continent so attractive? The African Fintech market is not only potentially very large, it is highly unpenetrated. Of the 1.1 billion people in sub-Sahara Africa, two-thirds of them are unbanked. Therefore, there is enormous scope for Fintechs to onboard these demographics into the financial sector. Furthermore, customers with access to credit is only a fraction of the proportion of the population with a bank account, so for innovative credit businesses, this is a huge […]

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Verdant Capital completes its third fintech transaction in 2020

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Date: 16 December 2020

Verdant Capital completes its third fintech transaction in 2020 with the closing of the final leg of a USD 13 million debt and equity raise for the South African innovative car subscription business, Planet42. The capital raise follows transactions completed by Verdant Capital for innovative productive lease-financing business in East Africa, Tugende and technology-driven SME lender in South Africa, Retail Capital. Verdant Capital raised a total of USD 40 million in the sector in 2020, evidencing strong support for the sector in Africa from a variety of investors types, and from investors from around the World. In total in Africa in […]

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Verdant Capital raises USD 10 million of debt funding for Planet42 to provide alternative finance through its Rent-To-Buy model

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Date: 11 December 2020

Planet42 is an innovative car subscription company that helps individuals ignored by banks to get access to a personal vehicle. To date, Planet 42 has bought and delivered over 2 000 second-hand cars in South Africa, its primary market. The debt capital raise, which follows an equity capital raise of approx. USD 3 million earlier in the year will help the company get many more South African mobile. Its Rent-To-Buy product is a flexible alternative to traditional finance for individuals who do not have access to financing from banks as a result of stringent lending policies. Planet42 signs motor vehicle […]

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Verdant Capital raises USD 6.7 million for Retail Capital in South Africa

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Date: 30 November 2020

Retail Capital is the leading and the first Merchant Cash Advance provider in the South African SME market. Retail Capital was incorporated in 2011 in Cape Town and has expanded geographically to Johannesburg and Durban; other cities are served by agents. In 2018, the company acquired First Asset Finance, an asset leasing business to bring an additional diversification into the credit book. The Asset Finance book which is mostly in the medical space has proved to be highly resistant during the covid-19 related lockdowns. The business is evolving into a broader technology- and channel-driven SME lender. As of March 2020, […]

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Verdant Capital Completes a USD 10 million Debt and Equity Financing for Tugende

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Date: 8 October 2020

Tugende has raised USD 10 million in debt and equity capital from a consortium of investors arranged by Verdant Capital. This capital raise includes a strategic equity investment by Mobility 54, the Africa-focused investment fund of Toyota Tsusho Corp. This adds further strength to Tugende’s balance sheet and pushes the total balance sheet size above USD 30 million. Additional details on the equity raise can be found here. Tugende’s business has rebounded robustly after the lockdowns imposed in Uganda to help stem the spread of the COVID-19 virus. Since the relaxation of the lockdowns, Tugende’s client payments have recovered to […]

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Zeepay Partners with VISA to Bring Digital Payments to More Consumers in Ghana

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Date: 8 October 2020

One of Africa’s leading mobile money and digital remittances services provider, Zeepay, extends Visa payment solutions and credentials to simplify cross border remittances. Zeepay, a fast-growing African fintech, on 28 September 2020 announced a partnership with Visa that will allow Africans in the diaspora to send money directly onto Visa debit and prepaid cards in Ghana. Through the partnership, Zeepay will integrate Visa’s real-time push payments solution Visa Direct, with INSTNTMNY its money transfer platform, to provide users of the Zeepay app a fast, convenient and secure way to receive money and remittances directly into their eligible card credentials. This […]

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Retail Capital retains its national BB+ credit rating despite Covid-19

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Date: 11 September 2020

Retail Capital, a leading and first Merchant Cash Advance provider in the South African SME market, has retained its national BB+ credit rating from the Global Credit Rating (“GCR”) agency. Despite a downgrade in the sovereign rating of the South African Economy, which was hit even harder by Covid-19, the local small and medium enterprise (SME) financier has retained its national BB+ credit rating while its international rating has dropped by one notch to B- in line with South Africa’s credit downgrade in March, both ratings have a stable outlook. Local and international investors remain confident to place more funding […]

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Zeepay Ghana granted EMI license by Bank of Ghana

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Date: 30 April 2020

Zeepay Ghana has been awarded the Electronic Money Issuer (EMI) license to operate as a mobile financial services company by the Bank of Ghana, the regulator of banking and financial services. As a leading African fintech company with footprint in over 20 African markets, their service will now enable subscribers to utilise a complete set of mobile money services such as Cash In – Cash Out, Peer-to-Peer (P2P) Transfers, Micro Insurance, Mortgage Remit, Airtime top up, Bill Payment and Pension Collections all in partnership with third parties such as Insurance Companies, Banks, and Pension Trustees amongst others extending its current […]

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Verdant Capital advises Planet42 on its ongoing capital raising programme. Planet42 (formerly ‘CarGet’) is the fastest-growing provider of Rent-to-Buy vehicle finance in South Africa

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Date: 30 April 2020

Following the successful closing of a 2.3-million-euro equity capital raise, Planet42 is seeking local and hard currency debt funding from specialist investors for the expansion of its second-hand vehicle long-term rental portfolio. Planet42 democratizes access to mobility by serving the financially excluded portion of the population – the people ignored by banks and other traditional financiers. The founding team of Planet42 has extensive experience in alternative vehicle finance and private equity in Africa. The CEO was previously a Country Manager in Mogo Finance while the CFO was the Head of African Investments for Trigon Capital. The customers of Planet42 are […]

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