Technology

Interswitch receives $110 million investment from LeapFrog and Tana Africa Capital – TechCrunch


African payments company Interswitch has secured a joint $110 million investment from LeapFrog Investments and Tana Africa Capital to expand its digital payment services across the continentthe two private investment firms said in a statement on Wednesday.

Interswitch has not confirmed the amount received from the companies. “The exact terms of the transaction have not been disclosed. We I can’t comment on that at this time,” a company spokesperson told TechCrunch when asked about the investment and Interswitch’s new valuation..

However, Interswitch Group CEO Mitchell Elegbe said in a statement that the company is “delighted to welcome LeapFrog and Tana on board, as we continue our work to advance the future of the payments landscape in Africa. “.

This news comes nearly three years after Interswitch’s last disclosed funding round, when Visa paid $200 million for a 20% stake in the company. At $1 billion (its last known valuation), Interswitch is one of Africa’s largest electronic payments and infrastructure companies. The fintech powers much of the rails of Nigeria’s online banking system and is well known for its point-of-sale terminals, online consumer payment platforms, Quickteller and Verve, the nation’s largest debit card scheme. in Africa, issuing over 35 million card assets since launch.

In 2016, Interswitch teased the idea of ​​going public. In an interview that year, CEO Elegbe told TechCrunch that the company would pursue a dual listing on the London and Nigeria stock exchanges..

Subsequent reports of the 20-year-old fintech listing on a major exchange also surfaced in 2019 and 2020; but this plan seems to have been shoveled in the back seat following his Visa investment.

As much as an exit from Interswitch is a victory for the African tech ecosystem, it is also a victory for the company, its leaders, and in particular its main shareholder, the British company Ignite Holdco Limited (composed of Helios Investment Partners and TA Associates). But as it is not long in coming, the holding company has found an immediate alternative. As well as injecting new capital into Interswitch’s business, part of the new investment involves LeapFrog and Tana acquiring shares from existing shareholders, including Ignite Holdco Limited.

Alongside existing investors, LeapFrog and Tana plan to work with management to continue to drive Interswitch’s pan-African strategy, which includes acquiring new customers and creating new products to support a financial inclusion strategy.

“Interswitch, a pioneer in Africa’s payments ecosystem, has been disrupting the monetary economy, driving digital payments and promoting equitable financial inclusion in Nigeria for two decades. This investment from LeapFrog confirms Interswitch’s tremendous talent and how point it is well positioned to seize the significant opportunity in the evolving digital payments landscape in Africa,” said LeapFrog Investments, Partner, Head of Financial Services in Africa, Karima Ola, in a statement.

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remon

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