MFS Africa raises $100m to expand its digital payments network
Africa’s largest digital payments network, MFS Africa, has raised $100 million in a Series C equity and debt financing round.
The round was co-led by a new investor, AfricInvest FIVE alongside existing investors Goodwell Investments and LUN Partner Group. 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. Providers of debt financing included Lendable and Norsad.
The new funding round will enable additional hires in Africa and globally, and will also be allocated to strengthening Governance, Risks and Compliance functions, treasury and liquidity pool, and continued investment in African fintechs.
This new raise is coming on the heels of MFS Africa’s latest expansion to Nigeria via the acquisition of Baxi, one of Nigeria’s largest digital solutions and distribution companies, from Capricorn Digital.
MFS Africa disclosed that alongside opening additional regional offices in key African markets, it is also planning to open offices in the US and China. The financing follows a series of acquisitions and investments in African fintechs, as the network continues to expand its hold across the continent.
In recent years the company has opened new offices in Abidjan, Kampala, Kinshasa, Nairobi and Lagos, in addition to moving its headquarters from Mauritius to London.
Today, MFS Africa’s hub connects over 320 million mobile money wallets, through a network with over 180 mobile money schemes, banks, money transfer operators, and over 250 global enterprises.
Dare Okoudjou, founder and CEO of MFS Africa, said: “This new fundraising round further demonstrates our commitment and the scale of our ambitions. 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. We look forward to continuing to work with them to expand and deepen that network in the years to come.”
In a statement, Julius Tichelaar, a partner at AfricInvest FIVE, said his firm led the round because MFS Africa’s broad range of financial and payments services resonates with AfricInvest FIVE’s financial inclusion strategy.
“Cross border payments remain an important challenge in many African markets today and MFS Africa is uniquely positioned to confront this. We are excited to join MFS Africa’s world-class management team on its mission and to support its growth journey,” he concluded.