e4, a South African fintech firm, has announced its acquisition by a consortium of private equity investors led by Infinite Partners. This significant transaction, valued at over R1 billion ($52.5M), has been confirmed in a press release. The acquisition is expected to provide e4 with the necessary capital to advance its business operations.
e4 specializes in offering a diverse range of digital solutions, including conveyancing and customer onboarding, among others. Its impressive client portfolio includes major South African banks such as Absa, FNB, Nedbank, and Standard Bank.
Infinite Partners, established in 2022 as an African private equity fund manager following its spin-out from Ethos Private Equity, focuses on mid-market growth investments ranging from R100 million to R1.5 billion.
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Grant Phillips, the CEO of the e4 group, expressed his satisfaction with the company’s sustained growth and expansion in recent years. He emphasized the significance of expanding relationships and creating value with local strategic partners, as well as diversifying revenue streams and venturing into new geographic markets. Phillips stated that the timing of this partnership aligns perfectly with their business strategy. He further mentioned that the entire consortium supports the organization’s objectives and has already begun providing valuable input on additional opportunities.
With a workforce of approximately 200 professionals, the e4 Group made notable strides in 2021 by establishing a new division in the United Kingdom. This division focuses on fostering relationships with conveyancing firms and mortgage lenders in the region. The proptech sector, in which e4 operates, particularly caught the attention of Infinite Partners and the consortium. Naomi Nethengwe from Infinite Partners emphasized the structural growth potential they identified in the digital and tech sector, particularly within the niche segment of proptech. She acknowledged the substantial time and investment required to build e4’s world-class technology stack.
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Additionally, Infinite Partners recognized e4’s impressive growth potential, taking into account the extent to which its existing product stack has penetrated the market. The fund’s CEO, Edward Pitsi, praised e4’s professionalized management team, composed of individuals with both experience and a strong drive for further growth. Pitsi expressed excitement about the prospect of e4’s management leveraging their expertise, knowledge, and client relationships to drive strategic growth. As investment partners, they aim to be both supportive and challenging, fostering the desired outcomes alongside e4’s management team.
With this substantial investment, the industry eagerly anticipates the expansion of e4’s solutions and its overall growth trajectory.
e4 fintech
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard