Interswitch, an Africa-focused integrated digital payments and commerce company that facilitates the electronic circulation of money as well as the exchange of value between individuals and organisations on a timely and consistent basis has secured $110M to scale its digital payment services across the continent.
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Nigeria-based payments company Interswitch has secured a $110M joint investment from LeapFrog Investments and Tana Africa Capital.
Interswitch is one of Africa’s largest electronic payments and infrastructure companies. The FinTech powers much of the rails for Nigeria’s online banking system and is well-known for its point-of-sale terminals, online consumer payment platforms, Quickteller, and Verve, the biggest domestic debit card scheme in Africa.
As most recently recorded in our Fintech Q1 2022 Venture Investment Report, the FinTech sector was the most prominent industry in 2022 driving 28% of total transactions and 29% of total funding in Q1’22 in Emerging Venture Markets. EVM’s saw 2 Mega Deals in Q1’22, both credited to the FinTech sector. In Africa, payment solutions technology firm Flutterwave closed a $250M Series D round. The African region has attracted a lot of attention from international investors, accounting for 75% of all investors backing African startups in Q1’22. All the big rounds closed by FinTech startups Flutterwave, Moove Africa, M-Kopa, Dash, Lucky, and Thndr attracted investments from global players like Tiger Global (USA), British International Investment (UK), Speedinvest (Austria), Endeavor Catalyst (USA). The FinTech ecosystem in Africa aggregated $672.7M across 67 deals to record a YoY growth of 197% in funding and 49% in deals.
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“Interswitch, a pioneer in the African payments ecosystem, has been disrupting the cash economy, driving digital payments and promoting equitable financial inclusion in Nigeria for two decades. This investment by LeapFrog affirms the formidable talent at Interswitch and how well-placed it is to seize the significant opportunity in Africa’s evolving digital payments landscape,” said LeapFrog Investments partner, head of Africa financial services, Karima Ola, in a statement.
According to Techcrunch, LeapFrog and Tana plan to work with management and existing investors to continue to drive Interswitch’s pan-African strategy, which includes acquiring new customers and building new products to support a financial inclusion strategy.
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