Fintech MFS Africa secures $100 million funding

Fintech MFS Africa secures $100 million funding
IMAGE: Dare Okoudjou, Founder and CEO of MFS Africa

Africa’s largest digital payments network MFS Africa, has raised $100 million funding through an equity and debt financing round.

According to a statement, the fundraising marks another milestone in the fintech’s expansion, following a series of acquisitions and investments in other African fintechs, including the recently announced acquisition of Baxi in Nigeria.

The new investor, AfricInvest FIVE, is one of the most experienced private equity investors in the continent and co-led the round with existing investors Goodwell Investments and LUN Partners Group (“LUN Partners”).

CommerzVentures, Allan Gray Ventures, Endeavor Catalyst and Endeavor Harvest also joined the round as new investors, while ShoreCap III returned as an existing investor with other funds, said the statement.

MFS Africa says it is continuing to expand its network and will be opening additional regional offices in key African markets, as well as in the USA and China. The new funding will enable the company to hire additional talent in Africa and globally to support its exponential growth.

Part of the new funding has also been earmarked to continue strengthening MFS Africa’s Governance, Risks and Compliance (GRC) functions as well as its treasury and liquidity pool. The company will also be continuing to invest in fintechs across the African payment ecosystem.

“This round of funding marks the beginning of the next phase in our growth. We greatly appreciate the renewed and continued confidence in us by our longstanding investors,” said Dare Okoudjou, Founder and CEO of MFS Africa.

“For our clients across Africa and beyond, this is also a validation of the choice they have made to partner with us in building a network of networks that make instant cross-border payments as simple as making a phone call,” he added.

In 2010, MFS Africa forecast that mobile money wallets would be the most dominant digital wallet in Africa. Today, its hub connects over 320 million mobile money wallets. Through its network of over 180 mobile money schemes, banks, money transfer operators, and over 250 global enterprises, millions of Africans can exchange value with each other and the world.

MFS Africa’s vision is to make borders matter less, which it enables through interoperability across payments schemes, borders and currencies.

Over the last year, MFS Africa has accelerated its expansion efforts across Africa by opening new offices in Abidjan, Kampala, Kinshasa, Nairobi and Lagos, in addition to establishing London as its new headquarters.

The fintech recently signed an agreement to acquire Baxi, a leading super-agent in Nigeria, and plans to build Baxi into a key node, allowing regional payments into and from Nigeria.