MFS Africa Secures $100M Series C Extension Round to Scale and Expand across Africa, Asia

MFS Africa Secures $100M Series C Extension Round to Scale and Expand across Africa, Asia

MFS Africa, the largest pan-African digital payments gateway has today announced that it has secured an additional $100 million in equity and debt funding led by the African investment manager, Admaius Capital Partners, taking the total funds raised in the series to $200 million.

The extended round included new investors, Vitruvian Partners and AXA IM Alts, as well as current investors AfricInvest FIVE and CommerzVentures, who re-invested. LUN Partners Group, Goodwell Investments, Allan Gray Ventures, Endeavor Catalyst, Endeavor Harvest, Equator Capital Partners, Ulme B.V., and Vlemeij B.V. are among the other returned investors, while Stanbic IBTC Bank and Symbiotic. Stanbic IBTC Bank provided the debt financing and will be partnering with the fintech firm to support the growth of the recently acquired BAXI network of merchants and agents in Nigeria.

MFS Africa will utilize the funds for its expansion plans across Africa, its integration into the global digital payment ecosystem, its expansion into Asia through its joint venture with LUN Partners to enable cross-border digital payments between Africa and China, and its ambitious growth plans for the BAXI network of merchants and agents in Nigeria and beyond.

The payment platform, known for its acquisition-led expansion strategy, only recently acquired US-based Global Technology Partners (GTP) in a cash-and-shares deal worth $34 million, which will speed its providing of card connectivity to mobile money customers. So far, it has linked over 320 million mobile money wallets throughout 35 African countries and 700 corridors.

MFS Africa has completed its acquisition of BAXI in Nigeria since the first closure of its Series C funding in November 2021. The Central Bank of Nigeria has since granted BAXI additional licenses, including PSSP and PTSP licenses

It has also continued to build out its leadership team with the addition of Meghan Taylor – previously Partner at Boston Consulting Group – as Chief of Staff, responsible for business integration across the Group; and most recently, Julian Adkins – previously Africa CFO at Millicom (Tigo) – who has been appointed as Group Chief Financial Officer.

Commenting on the extension round, Dare Okoudjou, founder and CEO of MFS Africa, said, “With this $100 million extension of our Series C fundraise we are thrilled to have the support of world-class investors Admaius, Vitruvian, and AXA IM Alts, and for the continued support of existing investors, on our journey to making borders matter less when it comes to payments. The strength of our business model is grounded on building a lasting digital infrastructure that unleashes and simplifies economic activities across the continent through any-to-any interoperability. 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.”

Marlon Chigwende, the Managing Partner of Admaius Capital Partners, emphasized the quality of the team that Dare has built as the key appeal to MFS, saying, “What brought us to this deal is the quality of the team that Dare has created; it is extraordinary.” Our investment in MFS Africa is exactly what our existing investors are looking for as an Africa-focused private equity firm investing in high-impact sectors that drive social and economic transformation, namely well-managed, fast-growing market leaders empowering financial connectivity and inclusion across the African continent.”

“At Vitruvian Partners, our mission is to support the most ambitious and talented entrepreneurs and high-growth companies to achieve their goals. We are delighted to be making our first investment in the continent with MFS Africa, and we believe that Dare and his team have built the foundations for a transformational business with strong long-term growth prospects.” Joe O’Mara, Partner at Vitruvian Partners, said.

“We are happy to invest in MFS Africa’s purpose of advancing digital financial inclusion, as this directly contributes to our broader impact goals of strengthening the financial connection and decreasing inequities globally,” said Jonathan Dean, Head of Impact Investing at AXA IM Alts. Our investment will help MFS Africa expand its product offering and create economic and societal benefits.”

FT Partners served as MFS Africa’s only financial and strategic advisor throughout the Series C investment. This deal demonstrates FT Partners’ extensive domain experience and unsurpassed track record in emerging markets, particularly Africa.