Ghanaian fintech Zeepay completes $7.9-million funding round

Accra-based fintech Zeepay announced the completion of a $7.9-million Series A.0 funding round on 30 July 2021. Funds raised hybridise equity and balance sheet funding to support Zeepay’s operations.

The round was led by I&P, a firm with over $250-million in assets 

Founded in 2014, Zeepay is currently the fastest growing mobile financial services company in Africa, with termination agreements in over 90 jurisdictions globally. The app allows digital remittances from the diaspora to mobile wallets, bank accounts and visa cards across 20 markets in Africa.

A strong capital table

The round was led by I&P, an impact investing group with over $250-million in assets under management, in the amount of $3-million. This was supported by ARK Holdings, a privately held family investment portfolio on behalf of Andrew Takyi-Appiah (Managing Director) and Zoe Takyi-Appiah, in the amount of $800 000.

Africa-focused early-stage firm GOODsoil VC committed a follow-on investment of $800 000 and were advised by Obsidian Achernar, a financial services firm licensed by the Bank of Ghana.

Transaction advisors for this raise included Verdant Capital and JLD & MB Legal Consultancy. Zeepay raised a debt of $3.3-million to drive balance sheet activities for liquidity purposes. This was led by Absa Ghana in the amount of $1.8-million and supported by First National Bank Ghana for $1.5-million.

Before the round, Zeepay efficiently deployed about $450 000 since its go-to-market in May 2016. This move achieved a cumulative average growth rate of about 146% during the five years leading to these transactions.

“Our raise of $7.9-million in Series A.0 gives Zeepay a strong capital table, ahead of closing our Series A.5 in the coming months. I am delighted to mention that the raise is coming at a time when we have successfully moved into our new commercial property in Accra. Our performance, I believe, is attributable to the grace of God. Indeed, it is my wish that our founding chairman, Dr Anthony Kwasi Appiah, was here today as we sign this deal. He played a pivotal role in getting the company to where it is today. May his soul continue to rest in peace. I would also like to take the opportunity to thank Mr Kwame Achampong-Kyei and the GLICO Group for their diligent support over the last five years,” commented founder Andrew Takyi-Appiah. 

Zeepay Chairman Kwesi Yankey noted, “Our strategy remains to drive our remittance to digital assets agenda across Africa and the Caribbean and we are excited by the rate of expansion. We have several strategic acquisitions lined up and anticipate closing before year-end. We look forward to being able to expand our operations beyond our current 20 countries and increase our active 30-day business from 13 markets to 20 plus markets across Africa. Indeed, what we celebrate today could not have been possible without the passing of the Payment Systems Act of 2019, which has been a progressive government initiative.”

Read more: Top startup web events in SA this week [05/07/2021]
Read more: SA digital academy EduPower opens Cape campus

Featured image: Lagos Techie via Unsplash