ARC - Afrikan Heroes

South African Fintech Firm, Crossfin, Acquired For $94.3m

November 25, 2021

In a deal for R1.5 billion ($94.3m), a consortium managed by Ethos’ Mid-Market Fund I (EMMF I) and included Patrice Motsepe’s African Rainbow Capital (ARC) has acquired Fintech business Crossfin.

Crossfin’s initial investors, Capital Eye Investments and the Multiply Group, which have been anchor shareholders since 2017, will leave the transaction, which is one of the largest private equity-led investments in South African Fintech sector.

“We believe this is an exciting opportunity underpinned by strong tailwinds in a cutting-edge industry. Crossfin is ideally positioned to continue capturing the payments technology and the broader Fintech opportunity, both existing and emerging. The transaction is an exceptional opportunity to acquire a group with significant value creation momentum,” Edward Pitsi, managing partner at EMMF I and deal lead said.

Why The Acquisition?

The EMMF I and ARC consortium, which includes the founding Crossfin executive management team and Ethos Artificial Intelligence Fund I, said the deal provides the group with much-needed exposure in Fintech, a sector that is exploding as a result of digitalisation and snowballing payment technologies, according to a statement.

The consortium will also provide Crossfin with acquisition and expansion money to enable it to develop organically and pursue new possibilities across South Africa and Africa, according to the conditions of the agreement.

“Crossfin has a capable management team in place that we are confident will continue to add significant value to what is already an impressive track record underpinned by quality and high-growth businesses. We are confident that Crossfin will play a key role in reshaping the financial services landscape and continue to innovate and pioneer as it has done in the past,” Charmaine Padayachy, ARC deal executive, said.

Crossfin’s portfolio includes approximately 134 million card and 20 million mobile-enabled payment transactions per year, totaling over R79 billion in value. Payment technology, smart funding, and venture capital are the three divisions of the company, which recently bought EOH subsidiary Sybrin as part of another consortium for R410 million.

Sybrin is a low-code and artificial intelligence (AI)-enabled enterprise software company that focuses on automation and the application of AI and machine learning in the finance sector.

For Motsepe’s investment arm, ARC, the consortium will purchase 37.33 percent of Crossfin for R600 million, assuming a mix of acquisition money from existing shareholders and growth capital for targeted portfolio purchases.

The deal is consistent with ARC’s objective to develop an ecosystem of Fintech-related businesses, according to the company, which has stakes in a variety of sectors including telecoms.

Crossfin acquired Crossfin acquired

Atlantica Ventures, Again, Leads $3.5m Seed Round In Nigerian Fintech API Startup OnePipe

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.
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Ibrahim Diong Elected New Director General of African Risk Capacity Conference of Parties (CoP)

June 10, 2020

The Conference of Parties (CoP) of the African Risk Capacity (ARC) has elected Mr. Ibrahima Cheikh Diong, of the Republic of Senegalas the new ARC Group Director General, for a term of four (4) years. The election of Mr Diong, which was ‘without objection’ from all the Members, was consistent with provisions of the Procedure for Electing the Director General which calls for consensus by the Parties, to the extent possible. The CoP commended the ARC Agency Governing Board and the Board of Directors of ARC Insurance Company Ltd (Joint Board) for putting in place a competitive and transparent process for the selection of the ARC Group DG.

ARC Group DG-elect, Mr. Ibrahima Cheikh Diong

The Selection Committee was composed of members of the ARC Agency Governing Board, ARC Ltd Board, representatives of the AU Commission and the World Food Programme, and partners. The Search Committee was assisted by an executive search firm; and the position was widely advertised on the ARC website, leading print media on the continent, and shared with relevant professional networks. An initial list of shortlisted three (3) best candidates was circulated to the CoP for the election. The ARC Group DG-elect, Mr. Ibrahima Cheikh Diong, Founder and Chairman of the Dakar-based Advisory firm, Africa Consulting and Trading (ACT Afrique Group), has over 30 years of professional leadership and management experience in Africa, the United States, Europe and Asia. His areas of expertise include private sector development, resource mobilization, strategic planning, change management, infrastructure development, financial engineering, strategic communication, environmental policy management, civil engineering, public policy development, public private partnership development, etc. He was a Senior Africa Banker/Advisor of BNP Paribas in London for over 3 years. Prior to BNP Paribas, he had held several high-level positions in the government of Senegal including Minister,

Special Adviser and Ambassador at large to the President of the Republic, Chairman of the Board of Senegal Airlines, Director General of International Cooperation and Permanent Secretary of Energy. His other previous senior positions include Regional Coordinator for Africa of the Public Private Infrastructure and Advisory Facility (PPIAF) and Manager of the SME Solutions Centers (SSCs) at the World Bank and International Finance Corporation, respectively, and Associate/Africa Director at Booz-Allen & Hamilton in the United States. He had also served as a senior consultant to several African and the American governments, UN agencies, international Foundations, African and International private companies and think tanks as well as Director of the Water Resources and Environment of the African Network for Integrated Development.

Mr Diong holds a Masters’ degree in International Affairs (MIA) with specialisations in international finance and environmental policy management from the School of International and Public Affairs (SIPA) at Columbia University in New York City. This is in addition to a Bachelor of Civil Engineering specializing in water resources management from Hohai International University in Nanjing, People`s Republic China among other professional and industry credentials. He is perfectly fluent in English, French, Mandarin Chinese and Wolof, with a working knowledge of Portuguese.In accordance with the Administrative Service Agreement (ASA) between ARC Agency and the World Food Programme (WFP), a recruitment and contractual process for onboarding of the new DG is underway. Mr. Ibrahima Cheikh Diong is expected to assume office latest by 1 September 2020.

African Risk Capacity (ARC) ARC consists of ARC Agency and ARC Insurance Company Limited (ARC Ltd). ARC Agency was established in 2012 as a Specialized Agency of the African Union to help Member States improve their capacities to better plan, prepare and respond to weather-related disasters. ARC Ltd is a mutual insurance facility providing risk transfer services to Member States through risk pooling and access to reinsurance markets. ARC was established on the principle that investing in preparedness and early warning through an innovative financing approach is highly cost-effective and can save upward of four dollars for every dollar invested ex ante.

With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, The Rockefeller Foundation and the United States, ARC assists AU Member States in reducing the risk of loss and damage caused by extreme weather events affecting Africa’s populations by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, cost-effective, objective and transparent manner. ARC is now using its expertise to help tackle some of the other greatest threats faced by the continent, including outbreaks and epidemics. Since 2014, 37 policies have been signed by Member States with US$74million paid in premiums for a cumulative insurance coverage of US$544million for the protection of 54million vulnerable population in participating countries.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry