TL;DR,
- Zeepay secures $3 million equity investment from Verdant Capital Hybrid Fund, becoming the fifth institutional investor in three years.
- The investment will fuel expansion of mobile money and remittance services to 10 new African countries within two years.
- With over $3 billion in transactions settled last year, Zeepay’s latest funding highlights investor confidence in its digital payment growth strategy.
Verdant Capital Hybrid Fund has just invested a substantial $3 million in equity in Ghanaian fintech firm Zeepay. Its core aim to strengthen its position in 2024 as it is ready for a significant expansion. With this financial milestone, fintech has become more visible in the African remittances industry and maintains its position as a top participant in mobile wallets and payments.
Verdant Capital Backs Ghanaian Fintech Zeepay with $3 Million for Pan-African Expansion
Andrew Takyi-Appiah, the fintech’s managing director, stated, “We are happy to welcome Verdant Capital Hybrid Fund as a new shareholder in our mobile money journey.”
In addition to improving its market position, the money infusion makes the fintech more appealing to other possible investors.
With its latest fintech investment, Verdant Capital has become the fifth institutional investor to join the fintech in the last three years, demonstrating increasing confidence in the company’s business plan and prospects for the future.
Strategic Remittance-to-Wallet Model Attracts Fifth Institutional Investor
Director Kwabena Appenteng of Verdant stressed that their capital investment was motivated mainly by the fintech’s outstanding history of hard currency revenues through its wallet remittance services. Appenteng commended the fintech’s management team, who underlined their crucial contribution to the company’s development and expansion.
Established in 2014, the digital payments platform specializes in tying up digital assets like cards, ATMs, bank accounts, mobile wallets, and digital tokens with payments, subscriptions, international airtime, and refugee payments through international money transfer operators (IMTOs).
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On behalf of top IMTOs, the business settles remittances instantly into mobile money wallets in Africa and the Caribbean across more than 20 countries.
In the last year alone, fintech settled over 10 million remittance transactions valued at over $3 billion. This large number highlights the value and dependability of fintech’s offerings in promoting financial inclusion throughout the continent and enabling smooth cross-border transactions.
Africa50 and Co-Investors Fuel Next Phase
Verdant Capital’s $3 million investment is part of a larger funding drive with backing from Oikocredit, Injaro, and I&P, among other pan-African investment companies. The payment platform intends to expand its wallet remittance services to IMTOs and throughout Africa.
Zeepay Team[Photo: Zeepay]
“We appreciate the help of our personnel, shareholders, and clients in closing this round. The capital would be beneficial to us in finishing our continuous growth drive into the remainder of Africa,” said the fintech’s founder and CEO, Andrew Takyi-Appiah.
“Using remittances in collaboration with MoneyGram, our short to medium objective is to extend our mobile money reach into a minimum of 10 nations within the next two years.”
Africa50 managing director and head of infrastructure investments Raza Hasnani said he was excited to work with the fdigital payments platform to help it maintain its dominant position in Africa’s digital payments infrastructure market and beyond.
“In the current economic climate, foreign currency inflows from remittances are the lifeblood of many African economies with large diaspora populations. The fintech offers the hardworking African diaspora a local, safe, reasonably priced, and practical money transfer option to help their loved ones,” he said.
Scaling Digital Payment Rails Across Africa and the Caribbean
The platform’s strategy is to create digital solid rails that smoothly link different digital assets. This link is vital to encourage financial inclusion and economic development in areas with inadequate traditional banking infrastructure.
The most recent fundraising round would help the fintech expand its services to other African and Caribbean nations. Thanks to this geographical expansion, millions of new users should profit from digital payments and mobile money wallets, solidifying the fintech’s position as a significant force in the industry.
Since its founding, Zeepay has experienced steady expansion and wise alliances. Fintech’s business plan and potential for future expansion are believed to be due to the company’s ability to attract significant investments from well-known venture capital firms and investment funds like Africa50 and Verdant Capital Hybrid Fund.
As it grows, fintech is still concentrating on using technology to improve the effectiveness and accessibility of remittance services. By offering a safe, reasonably priced, and practical digital payment platform, FinTech is positioned to influence the financial scene in Africa and beyond significantly.
Finally, Africa50 and other investors, together with the $3 million equity investment from Verdant Capital Hybrid Fund, are expected to propel the fintech’s growth throughout the continent.
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