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Africa’s largest digital payments gateway bags $100M to unite the continent in digital banking

Image credits: MFS Africa

MFS Africa, the African mobile money interoperability platform is today announcing that it has secured $100M in debt & equity financing, which takes the total amount raised in its Series C to $200M. Late last year, the company raised $100M to kickstart its Series C financing which was structured as a $70M equity and $30M debt.

The funding was led by Admaius Capital Partners and saw the participation of the new investors Vitruvian Partners and AXA Investment Managers Alts. Other existing investors, AfricInvest FIVE and CommerzVentures also featured, doubling down on their investments.

Stanbic IBTC Bank and Symbiotic provided debt financing in this round. Stanbic IBTC Bank will partner with MFS Africa to support the growth of the recently acquired BAXI network of merchants & agents in Nigeria. FT Partners served as MFS Africa’s exclusive financial & strategic advisor this Series C.

Founded in 2009, MFS Africa connects mobile network operators across the vast African continent through a single API. On top of mobile remittance services, the MFS Africa API also enables bulk payments, merchant payments, bank-to-wallet transfers and an array of other cross-border digital payments services.

“We are thrilled to invest in MFS Africa’s mission of accelerating digital financial inclusion, as this directly contributes to our broader impact goals of improving financial connectivity and reducing inequalities globally. Our investment will support the expansion of MFS Africa’s product offering and the creation of economic and societal value.” highlights Jonathan Dean who leads the Impact Investing arm at AXA IM Alts. 

What the funding will do

The new funding will further fuel MFS Africa’s expansion efforts across Africa while also supporting its integration into the global digital payment ecosystem. The fintech is also expanding into Asia through its joint venture with LUN Partners in an effort to enable cross-border digital payments between Africa and China. The company also expects to fulfil its ambitious growth plans for its acquisition; the BAXI network of merchants and agents, in Nigeria and beyond. 

Since closing the first half of its Series C back in November 2021, MFS Africa went on to completely acquire BAXI in Nigeria. BAXI has benefitted from this acquisition, receiving additional licences, including PSSP and PTSP licences, from the Central Bank of Nigeria. The company led by its founder Dare Okoudjou has also continued to build out its leadership team having recently brought on Meghan Taylor, a previous Partner at Boston Consulting Group, who just recently as Chief of Staff was responsible for business integration across the Group. It has also recently brought on Julian Adkins, a past Africa CFO at Millicom (Tigo), who is now Group Chief Financial Officer. Last week, MFS Africa announced it had acquired the US-based Global Technology Partners (GTP) which will accelerate its efforts to offer card connectivity to mobile money users.

“Our multiple initiatives and solutions are providing access to Africans, at home and in the diaspora. We are building MFS Africa into a safe, sound, scalable and high-impact pan-African payment infrastructure that will facilitate Africa’s rapidly growing commerce, both now and in the future,” remarked Dare Okoudjou, MFS Africa’s founder and CEO.

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