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Mauritius-based Accelerex Holdings has signed an investment agreement with regional private equity firm, Africa Capital Alliance (ACA).
The Capital Alliance Private Equity IV (CAPE IV) fund has invested a reported $20-million in Accelerex which allows CAPE IV to be identified as a strategic partner.
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In an official press release, Tunde Ogungbade, CEO of Global Accelerex, comments on the investment made by Africa Capital Alliance (ACA).
“I am very excited by the ACA investment. In our quest for the right investment and strategic partner, we were looking for a company that shares our vision to empower businesses in Sub-Saharan Africa to exceed all their customers’ payment expectations. This partnership will help Accelerex to aggressively expand into Africa and accelerate product development. I see our vision becoming a reality with this move”.
Accelerex is the parent company of fintech, Global Accelerex Limited, Africa’s leading provider of electronic payment and business management solutions.
As a parent company, Accelerex can control the management and operations of Global Accelerex Limited. Accelerex signed an investment agreement that supports digital financial technology companies across Africa.
Global Accelerex Limited was implemented in 2008 and began operating the payments services in October 2013, after receiving approval from the Central Bank of Nigeria (CBN).
In 2018 and 2019, Global Accelerex Limited positioned as the number one Payment Terminal Service Provider in Nigeria. The company supports 95% of Nigerian banks and assists more than 90 000 merchants across Nigeria’s 36 states.
Accelerex began operating in Ghana in 2019 and aims to expand into Cote d’Ivoire, Kenya, Tanzania, and South Africa within the next two years. As the company secures a $20-million investment from ACA, the funding received will be used to accelerate product development.
Accelerex Holdings creates and delivers convenient and secure, financial, and non-financial innovative solutions that assist Africans to make their lives easier.
Accelerex acquired a majority stake in SLS Microfinance Bank to assist its fast-growing agent banking business’ with their financial needs.
In 2019, Accelerex acquired a minority stake in a Fintech platform provider, Connected Analytics (also referred to as ThankUCash). ThankUCash encourages merchants to offer loyalty rewards to their customers to drive sales.
Accelerex operates through Accelerex Network Limited (ANL) which is the company’s agency banking arm that encourages branchless banking. ANL accelerates financial inclusion in Nigeria as it supports the Federal Government of Nigeria, as well as the Central Bank of Nigeria’s (CBN) financial inclusion report. The financial inclusion agenda targets the underserved and unserved areas of the Nigerian population.
Accelerex Network Limited increased its agent network to more than 9 000 agents within the last year and aims to reach 40 000 agents by the end of 2021.
Africa Capital Alliance (ACA)
ACA is a leading pan-African investment firm that donates funds and facilitates investments in Sub-Saharan Africa. The ACA was founded in 1997 and specialises in growth equity, buyout, turnaround investments, and risk capital.
Paul Kokoricha, Partner at ACA, explains that the partnership between ACA and Accelerex Holdings is vital for scalability.
“Accelerex’s strong business model and its agile, and dynamic management team makes it the ideal African Fintech group to back. We are thrilled about this alliance and are happy to bring our experience to the board.”
ACA established the CAPE IV fund which is valued at $567-million. The fund aims to invest in companies that show growth potential in financial services that include technology, media, and telecoms in its business model. Fast-moving consumer goods, energy, and multiple emerging sectors in West Africa are targeted by the CAPE IV fund.
Featured Image: Scott Graham via Unsplash