Stanbic Bank Backs African Fintech Startup MFS Africa In New $100M Funding Round

MFS Africa, a pan-African digital payments network, has raised $100 million in equity and debt capital to bolster its previously received $200 million Series C fund.

The fresh round was led by Admaius Capital Partners, an African investment manager, with participation from Vitruvian Partners and AXA Investment Manager. Stanbic IBTC Bank and Symbiotic provided debt funding.

Dare Okoudjou, the founder and CEO MFS Africa
Dare Okoudjou, the founder and CEO MFS Africa

The freshly secured financing, according to the digital platform, would enable the company to expand beyond Africa into Asia while building cross-border payments synergies with Africa via a joint venture with LUN Partners as it executes its expansion plans for BAXI, a startup it purchased late last year.

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Global Technology Partners (GTP), based in the United States, was recently acquired by MFS Africa for $34 million as part of its global expansion efforts.
Last year, it also reached a deal to acquire Baxi’s parent company, Capricorn Digital, for an unknown amount.

The 100% cash acquisition is designed to expand MFS into Africa’s largest economy, where its presence has been hampered by the country’s small number of mobile wallets. Capricorn will now be known as MFS Africa, but Baxi will remain its flagship product.

In November, the company raised $100 million in Series C financing, with $70 million in equity and $30 million in debt.

Read also Ethiopia To Move Unloaned Bank Funds To National Startup Fund

The corporation stated that it is establishing interoperability between payment networks in the Asian nation and Africa, beginning with Nigeria and then expanding to other regions.

“The strength of our business model is grounded on building a lasting digital infrastructure that unleashes and simplifies economic activities across the continent through any-to-any interoperability. Our multiple initiatives and solutions are providing access to Africans, at home and in the diaspora. We are building MFS Africa into a safe, sound, scalable and high-impact pan-African payment infrastructure that will facilitate Africa’s rapidly growing commerce, both now and in the future,” Dare Okoudjou, the founder and CEO said.

MFS Africa Stanbic MFS Africa Stanbic

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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Paysend and Afrimoney Appraises West African Money Transfer Operations

Nika Naghavi, Executive for MNOs at MFS Africa

One of leading fintech startups in the United Kingdom Paysend, has started appraising its technology partnership with Afrimoney, the mobile money service provided by Africell, to enable money transfers to West Africa, specifically in Gambia and Sierra Leone. With over 6.5 million customers, Paysend believes it has value to offer West African customers.

Sources say that through the partnership, which is powered by MFS Africa, Paysend will enable users to send money across borders via Africell to The Gambia and Sierra Leone, with the funds reaching Afrimoney mobile wallets.

Nika Naghavi, Executive for MNOs at MFS Africa

With features like low fixed fees on money transfers, competitive exchange rates, and the ability to receive instant international payments, Paysend hopes to transform how communities in West Africa manage money globally.

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“The partnership between Afrimoney and Paysend, through MFS Africa, will assist customers all over the world to stay better connected and send funds to support loved ones in West Africa. They will experience more affordable rates for transferring money and experience far quicker processing times. Through Paysend’s easy-to-use app, automated phone number, and text ID verification, users can immediately make transfers through Paysend’s platform,” Alex Bessonov, Group Head at Paysend said.

Andy Widmann, Afrimoney Group Director said remittances are among the most important applications for mobile money.

“We want our Afrimoney platform to be as simple and accessible as possible. This partnership with Paysend and MFS Africa makes it easier for people around the world to send mobile money to Gambia and Sierra Leone, thus making the service even more useful to customers and giving them more financial opportunities,” Widmann said. 

“Originally a product found in only a few select markets, mobile money is now a global phenomenon. The benefits of mobile money are especially pronounced in the context of family remittances and connecting the diaspora and their loved ones back home. Through this exciting partnership with Afrimoney and Paysend, we will be jointly expanding access for the Gambians and Sierra Leoneans, making it seamless and cost-effective for them to receive money from their families abroad,” Nika Naghavi, Executive for MNOs at MFS Africa said.

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For a limited 30-day period, Paysend is offering fee-free transfers to digital wallets in The Gambia and Sierra Leone until the end of May.

Recipients will also receive an equivalent 2 USD bonus, credited by Afrimoney. Customers will also enjoy their first three transfers to digital wallets for improved exchange rates.

To start sending money to West Africa, download the Paysend app from the App Store or Google Play.

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

German Investor Makes Grand Entry Into Africa, Backs MFS Africa In $100m Series C 


MFS Africa, a digital payments platform, has raised $100 million in Series C funding. The funds raised in the form of equity ($70 million) and debt ($30 million) will be used to assist the company’s African expansion, which enables cross-border payments across the continent. This is the biggest fundraise by MFS Africa since it began operations in 2019. 

This latest round of funding increases the company’s total equity financing raised to little over $95 million since its inception in 2009. New investors, including CommerzVentures, Allan Gray Ventures, Endeavor Catalyst, and Endeavor Harvest, joined the business in addition to existing shareholders who extended their stakes.

Dare Okoudjou, Founder and CEO of MFS Africa
Dare Okoudjou, Founder and CEO of MFS Africa

“This fundraising demonstrates once again our commitment and the breadth of our ambitions […] This round of funding marks the start of a new phase of expansion. We appreciate the trust placed in us by our long-time investors, and are delighted to welcome our new investors,” Dare Okoudjou, Founder and CEO of MFS Africa said. 

With the funding, the company plans to expand into new African countries, develop its personnel, and maintain its investments on the continent.

This is the first investment in Africa by German VC CommerzVentures. 

The fintech, which plans to create new offices “in significant African countries as well as in China and the United States” by 2020, has already expanded its operations to Côte d’Ivoire, Uganda, the Democratic Republic of the Congo, and Kenya in particular.

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The company, which has relocated its headquarters from Mauritius to London, plans to expand its workforce both within and outside of Africa. A portion of the funds will be utilized to enhance the company’s treasury and fund investments in African technology and payment startups.

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MFS Africa, which claims to have over 320 million mobile accounts in over 35 African nations, plans to expand its mobile payments business on the continent. He said in April that Sub-Saharan Africa is the most developed market for mobile payments, with two-thirds of worldwide transactions expected to be done via mobile by 2020.

MFS Africa Series C MFS Africa Series C

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 write

After Strategic African Entries, MFS Africa Finally Enters Nigeria Via Baxi Acquisition

MFS Africa‘s mission to colonize Africa’s fintech ecosystem continues. Barely some months after entering Cameroon via Maviance and after announcing a partnership deal with Global Technology Partners (GTP) to supply 100 million mobile money cards to mobile money users across Africa, the company has finally entered Nigeria through an agreement to acquire Baxi, one of Nigeria’s leading super-agent networks.

Degbola Abudu, Baxi CEO
Degbola Abudu, Baxi CEO

“We’re thrilled to partner with the MFS Africa team to expand our service offering for individuals and SMEs. We believe that we’ve barely scratched the market’s potential. Only 3% of Nigerian SMEs have access to credit products. By teaming up with MFS Africa, and with the strong support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth,” said Degbola Abudu, Baxi CEO.

The deal, which is still awaiting approval from Nigeria’s Central Bank, will be the country’s second-largest fintech acquisition to date.

MFS Africa Baxi Nigeria
Dare Okoudjou is MFS Africa Founder and CEO. Source: MFS Africa

Why The Acquisition?

Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks, founded in 2014 by Degbola Abudu and Folu Majekodunmi. To the last mile, Baxi offers a cash-in/cash-out service as well as value-added services such as account opening, money transfer, bill payment, and more. Baxi has already processed over USD 1 billion in transactions this year through its network of over 90,000 agents. 

MFS Africa would turn Baxi into a significant node on its digital payment network after the deal closes, allowing clients to make regional and worldwide payments to and from Nigeria.

MFS Africa will also expand Baxi’s offline SMEs offering to a select number of markets within MFS Africa’s 320 million mobile wallets presence across more than 35 African countries.

“This deal is a pivotal step in our journey. By combining Baxi’s network of SMEs operating as agents with our pan-African network, we aim to take Nigeria’s SMEs to the rest of Africa and the world. Our expansion into Nigeria brings us one step closer in our mission of making borders matter less,” said Dare Okoudjou, MFS Africa Founder and CEO.

Nigeria is one of the continent’s most dynamic markets; it is Africa’s largest economy and home to the continent’s highest number of SMEs. It is also Africa’s largest remittance market, accounting for one-third of all intra-Africa remittances. Due to the country’s tiny number of mobile wallets, MFS Africa’s footprint in Nigeria has been restricted thus far. MFS Africa will expand its pan-African network into Nigeria as a result of the acquisition, connecting Nigerian businesses to the continent and the rest of the world.

The sector’s expansion in Nigeria has been hindered by previous prohibitions on mobile network operators’ participation in mobile money services. Nigerian fintechs that have created robust agent networks are the critical interface to reach Nigeria’s 31 million financially underserved and 67 million financially unserved people, which account for more than 55 percent of the country’s population. Supporting and growing SMEs is critical for Nigeria’s economy, as they account for half of the country’s GDP and create 76% of jobs[i]. Baxi addresses a vital gap by giving unbanked Nigerians and informal SMEs with access to financial services through its presence in 36 Nigerian states.

Both companies’ focus areas are complementary. Baxi’s omni-channel distribution network streamlines and unifies online and offline payments for SMEs and merchants in Nigeria. MFS Africa streamlines cross-border payments by combining them into a single hub.

MFS Africa continues to accelerate and raise its growth via strategic investment and acquisitions, which are backed by its shareholders, including the acquisition of Beyonic in 2020.

MFS Africa Baxi Nigeria MFS Africa Baxi Nigeria

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

On Track To Conquer African Fintech Market, MFS Africa Enters Sierra Leone

MFS Africa continues its journey to colonise Africa’s fintech ecosystem. Barely some months after entering Cameroon via Maviance and a month after announcing a partnership deal with Global Technology Partners (GTP) to supply 100 million mobile money cards to mobile money users across Africa, the company has announced entry into Sierra Leone, with a new partnership with AfriMoney, the mobile money service of telecommunications services provider Africell. The partnership will enable mobile money users in the country to receive payments from abroad.

Dare Okoudjou, CEO and founder of MFS Africa
Dare Okoudjou, CEO and founder of MFS Africa

“To drive growth in Sierra Leone, bringing more people into the financial system is essential. We are excited to develop new financial pathways to the market with this partnership — Africell offers a compelling and easy way for Sierra Leonean people and businesses to access financial services easily. We’re expanding the possibilities for users by making it seamless and cost-effective to receive money across borders — whether that’s enabling a son or daughter in Freetown to send money home to his or her family or removing obstacles to entrepreneurs who want to look further afield for business,” Dare Okoudjou, CEO and founder of MFS Africa said. 

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Customers of mobile money transfer operators connected to the MFS Africa hub, such as MoneyGram, World Remit, and Xoom, can now send money to mobile wallets in Sierra Leone with ease. MFS Africa’s hub connects over 320 million mobile wallets, enabling a slew of new cross-border payment options.

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Remittances from overseas account for more than half of yearly household expenditure in Sierra Leone, according to the corporations, and hence play a vital part in the country’s economic growth. In 2017, less than one in every five Sierra Leoneans had a bank account, and mobile money, they claim, gives an alternative to traditional financing.

“AfriMoney is driving greater financial inclusion in Sierra Leone and other African countries. Our partnership with MFS Africa adds to the strength of the AfriMoney platform by linking us to more international mobile transfer operators and giving these operators superior access to the growing market of Sierra Leone. Remittances are an important source of economic value for Sierra Leone, and we are pleased to be working with MFS Africa to make them easier and more affordable for customers,” Andy Widmann, Group Director, AfriMoney, said. 

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