Zeepay, Africa’s leading challenger fintech, has announced the completion of its Series A.0 fund raise in a round led by Investisseurs & Partenaires (I&P). The leading Ghanaian fintech announced that it has completed a fundraise of US$7.9million in its Series A.0 (which was a hybrid of both equity and balance sheet funds to support its operations).
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 an integrated omni-channel digital payments and value-added financial services provider operating across the continent.
The fund raise was led by I&P – an impact investing group with over US$250million in assets under management in the amount of US$3million, and supported by ARK Holdings, a privately held family investment portfolio on behalf of Andrew Takyi-Appiah (Managing Director) and Zoe Takyi-Appiah in the amount of US$800,000.
GOODsoil VC, an African-focused early-stage venture capital firm, committed a follow-on investment to the tune of US$800,000 and were advised by Obsidian Achernar, a financial services firm licensed by the Bank of Ghana. The transaction advisors for this fundraise were Verdant Capital and JLD & MB legal Consultancy.
The company raised a debt of US$3.3million to drive balance sheet activities, mainly for liquidity purposes, which was led by Absa Bank Ghana in the amount of US$1.8million and US$1.5million supported by First National Bank Ghana.
Zeepay, prior to the fund raise had efficiently deployed a total of about US$450,000 since its go-to-market in May 2016 to achieve a cumulative average growth rate of about 146 percent during the five years leading to these transactions. An exciting story on the continent, full of hope and inspiring for the new African – that is the young African looking to chart their own path through startups across the continent.
Andrew Takyi-Appiah, Managing Director and Founder of Zeepay, mentioned that: “Our raise of US$7.9million in Series A.0 gives Zeepay a strong capital table, ahead of closing our Series A.5 in the coming months. I am delighted to mention that the raise is coming at a time when we have successfully moved into our new Commercial Property in Accra”.
Mr. Takyi-Appiah further mentioned that: “Our performance, I believe, is attributable to the Grace of God. Indeed, it is my wish that our Founding Chairman, Dr. Anthony Kwasi Appiah, was here today as we sign this deal. He played a pivotal role in getting the company to where it is today. May his soul continue to rest in peace. I would also like to take the opportunity to thank Kwame Achampong-Kyei and the GLICO Group for their diligent support over the last 5 years”.
According to Mr. Paa Kwasi Yankey, the Chairman of Zeepay: “Our strategy remains to drive our remittances to digital assets agenda across Africa and the Caribbean, and we are excited by the rate of expansion. We have a number of strategic acquisitions lined up and anticipate closing before year-end.
“We look forward to being able to expand our operations beyond our current 20 countries and increase our active 30-day business from 13 markets to 20 plus markets across Africa. Indeed, what we celebrate today could not have been possible without passage of the Payment Systems Act 2019, which has been a very progressive government initiative.”
Ruth Amenu, Chairperson-Zeepay UK mentioned: “The additional funding is a landmark for a wholly African-owned company, and a testament to how technology has democratised the world to give Zeepay a seat at the table. For a business that started from such humble beginnings, this story is remarkable and inspiring. It is my prayer that this motivates the African Youth to believe ‘it is possible to succeed when you put your mind to it’.”
Baafour Otu-Boateng, Investment Director at I&P remarked: “Zeepay has proven itself unique in its ability to take a leading position in the rapidly growing world of African fintechs while delivering profitability. We are excited to partner with a management team that has demonstrated a robust track-record of delivering innovative products and services twhichhat transform the remittance and mobile money ecosystems. As an impact investor, we look forward to supporting Zeepay’s remarkable growth story as the company deepens financial inclusion for millions of users across Africa.”
Ashley Thompson-MacCarthy, CEO at Obsidian Achernar remarked: “We are delighted to deepen our partnership with Andrew and the incredible Zeepay team as they scale and roll out mobile money and remittance services across the continent.
“With remittance flows exhibiting considerable resiliency in times of pandemic-induced disruption, Zeepay has grown from strength-to-strength and the current fundraise is a testament to the company’s value and potential. As an Africa-focused financial services firm, we are driven by an unyielding commitment to contribute in the creation and furtherance of lasting economic growth and development on the continent, and are excited to work together with an entity that shares our ethos.”
Merene Benyah, Founding Partner of JLD & MB Legal Consultancy, mentioned: “We are extremely proud of our client, Zeepay, for this landmark raise, and pleased to have supported Zeepay since its inception in 2014. Zeepay is a strong brand and comes to the transaction with a lot of experience and insight.
“The successful close of both debt and equity at a time when most markets have contracted is a strong indication of the trajectory that the company is on. We believe their success today will put Ghana once again on the world map, and confirm Zeepay as a strong contender in the Fintech space.”
According to Verdant Capital, 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 expects this strategy to continue driving rapid revenue growth, profitability and financial inclusion.
