African fintech company, MFS Africa, has been strategically positioning itself across Africa. After cementing its presence in East Africa through the acquisition of Tanania-based Beyonic in 2020 and recently making a $2.3m investment in another Uganda fintech Numida, the company has turned its funding searchlights on the much neglected French-speaking Central Africa. Consequently, it has invested $3m in Maviance, a Cameroonian firm that offers digital financial services such as agency banking and bulk bill payments.
“Our journey now is to become a regional company, providing cross-border services within the CEMAC region. We want to be a catalyst for interoperability,” Jerry Cheambe, co-founder and CEO of the company said.
Here Is What You Need To Know
- MFS Africa, a cross-border fintech business that connects mobile money providers like MTN to banks like Ecobank across 34 African countries, is the sole investor in Maviance’s latest round. The company has also taken a minority stake in Maviance by virtue of this investment.
- Maviance will use this seed funding to increase Smobilpay, its flagship product’s national presence in Cameroon, allowing it to serve more customers and expand into Gabon and the Republic of Congo. Maviance will also develop new products, but they will not be available in the next 12 month.
- Maviance chose MFS Africa because it brings capital, industry experience, a product suite, and a pan-African network of fintechs and businesses of all sizes to the table, according to Cheambe.
- From start to close, the transaction reportedly took over a year.
Why The Investors Invested
With this investment, MFS Africa continues its conscious drive to be Africa’s largest hub for digital financial services.
Maviance has been on MFS Africa’s radar for some time, according to Dare Okoudjou, founder and CEO. On what persuaded the company to approach Maviance for investment, Okoudjou said:
“It was a combination of the asset — what they have built on the ground — the ability to work with them and the shared vision of the founder.”
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Okoudjou said MFS Africa had already established itself in Cameroon and the Republic of Congo, collaborating with MTN and Airtel, and needed to partner with Maviance to cover the area and complete integrations far more quickly.
Both companies have equally made a resolve to cooperate on developing digital financial services in the six countries that make up the Central African economic region: Gabon, Equatorial Guinea, Republic of Congo, Central African Republic, Chad, and Cameroon.
A Look At What Maviance Does
Jerry Cheambe and Michael Flach formed Maviance in Germany in 2008. They proceeded to launch the company in Cameroon in 2012, at a time when mobile money seemed impossible in Cameroon.
“I remember saying at one point that mobile money will not work in Cameroon because it was just not happening,” Cheambe said.
Smobilpay, the fintech firm’s flagship app, is a network that incorporates payment solutions from banks, mobile money operators, and telecoms providers. The app is linked to GIMAC, the interoperability transfer of the Bank of Central African States (BEAC), the region’s central bank.
Smobilpay may not be familiar with customers since it is a business-to-business (B2B) company. According to the firm, the platform serves over 500,000 unique customers each month.
Maviance founder Jerry Cheambe claims the pandemic has fueled business owners’ desire to digitize payments.
Between January 2020 and January 2021, the number of mobile connections increased by 11% to 26.6 million in Cameroon, putting internet penetration at 34%.
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The country is home to 95 percent of Maviance Cameroon’s 20-person workers. Cheambe is based in Germany, where he is in charge of Maviance Germany, which is separate from the Cameroonian business.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer