• Verdant Capital Hybrid Fund invested $3 million in Zeepay to bolster its African fintech presence.

• The company plans to launch its mobile wallet and payment services in 10 upcoming African countries in the next two years.

• This funding underscores ZEEPAY’s importance in African remittances. Last year, it facilitated transactions worth $3 billion.

Verdant Capital Hybrid Fund has just invested a substantial $3 million in equity in Ghanaian fintech firm Zeepay. Zeepay wants 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.

African Fintech Expansion by Zeepay

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 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.

Securing a Position in the African Market

Director Kwabena Appenteng of Verdant Capital stressed that their investment was motivated mainly by the fintech’s outstanding history of hard currency revenues through its remittance-to-wallet approach. Appenteng commended the fintech’s management team, who underlined their crucial contribution to the company’s development and expansion.

Established in 2014, the fintech 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).

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.

Growing an Impact with Africa50 Investment

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. With this combined capital, the fintech will be able to expand its services to IMTOs and enable more effective and readily available remittance services.

“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 fintech to help it maintain its dominant position in Africa’s digital payments infrastructure market and beyond.

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“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.

Effect on mobile money wallets and digital payments

With the large cash injection, Zeepay will improve its infrastructure for digital payments and extend its mobile wallets and services throughout Africa. This calculated step is crucial for supporting the high number of remittance transactions the organization processes annually.

Last year, fintech made over 10 million remittance transactions possible, valued at over $3 billion. The fresh funding is intended to help the fintech realize its goal of growing and offering more all-inclusive services to IMTOs, senders, and recipients of remittances.

Zeepay’s strategy is to create digital solid rails that smoothly link different digital assets. The fintech ensures consumers can access various financial services by combining mobile wallets, bank accounts, cards, ATMs, and digital tokens. 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.

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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.

Through its creative mobile money wallets and remittance solutions, the fintech is positioned to play a vital role in African communities’ financial inclusion and economic empowerment by improving its digital payments infrastructure and reaching a wider audience. The fintech has a bright future as it intends to expand its offerings and establish itself as a payment market leader.