Baobab Payments GmbH, trading as Peach Payments, has successfully concluded a €29 million / US$30 million funding round. This round, which was initially announced in April, was spearheaded by Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, a reputable UK-based asset manager.
Peach Payments stands as a distinguished enterprise-grade digital payment service provider, specialising in facilitating online payments for businesses of all sizes across Africa. The infusion of funds comes as a strategic step to accelerate the company’s growth, foster innovation through the development of new products, and expand its footprint into new African markets. Furthermore, Peach Payments aims to strengthen its presence in existing markets, including South Africa, Kenya, and Mauritius, by intensifying market share, increasing its workforce, and introducing innovative products, all with a primary focus on serving its merchant partners and aiding in their business scaling endeavors.
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Rahul Jain, CEO, and co-founder of Peach Payments, emphasised the company’s commitment to simplifying the payment landscape for businesses expanding across the African continent. He highlighted that Peach Payments’ unique feature allows businesses to seamlessly transition into new African countries without the hassle of finding new payment partners. With up to 12 different payment methods, including credit cards, debit cards, instant EFTs, various buy-now-pay-later options, and electronic vouchers, Peach Payments offers a comprehensive solution for overcoming the fragmentation in payment methods that plagues many African markets.
Africa’s electronic payments market is expected to grow by 152% from 2020 to 2025 – McKinsey & Company
Jain explained, “For businesses targeting consumers across Africa, this fragmentation in payment methods and stores of value makes it incredibly complicated to accept payments in their digital channels. Peach Payments already abstracts that complexity for merchants in the countries where we are operational. We want to expand this to more African countries, and are evaluating a number at this time.”
The partnership with Apis Partners brings not only capital but also expertise and a global network to support Peach Payments’ infrastructure, product development, and team expansion. This collaboration aims to solidify the company’s recent growth and propel it into the next phase of expansion.
Udayan Goyal, Co-Founder and Managing Partner at Apis Partners, commented on the strategic partnership, stating, “We look forward to leveraging Apis’ capital, expertise, and global network to support new investment in Peach Payments’ infrastructure, products, and people to consolidate the company’s recent gains and support the next phase of growth.”
Peach Payments envisions a brighter future for both consumers and merchants with the expansion of its payment platform. Consumers will enjoy a seamless online payment experience with enterprise-grade security while gaining access to cross-border payments. This accessibility empowers them to purchase goods and services internationally, all while using their preferred local payment methods. Simultaneously, merchants will seize new opportunities to expand their businesses internationally, tapping into a broader customer base.
Rahul Jain highlighted the value Apis Partners brings to the deal, saying, “The Apis team brings an incredible wealth of experience in fintech across the globe, and we look forward to exploring exponential opportunities together with them. Their ability to listen and advise on strategic moves is a valuable asset for any startup along its journey. We specifically wanted a shareholder that was not a helicopter investor but would be actively involved in helping us grow the business.”
As an ESGI-native investor, Apis Partners’ sector expertise will play a crucial role in Peach Payments’ mission to maximize financial inclusion. By enabling more merchants to participate and thrive in today’s increasingly digital global economy, Peach Payments aims to create a more inclusive financial ecosystem.
Matteo Stefanel, Co-Founder and Managing Partner at Apis Partners, expressed optimism about the African payment landscape, stating, “We continue to see significant opportunities in African payments as strong secular trends that are not related to annual business cycles – such as the conversion from cash to digital and in-store to online payments – persist across key markets. We have been impressed by the vision and execution Peach Payments’ management team has brought to bear to capitalize on these trends. We look forward to working with Peach Payments to expand its reach into new markets with innovative merchant solutions.”
The infusion of new funding marks a turning point for Peach Payments. Rahul Jain highlighted the company’s newfound ability to execute multiple priorities simultaneously, which will undoubtedly enhance the speed of their operations.
Legal aspects of the funding round were efficiently handled by Webber Wentzel on behalf of Apis Partners and by V14.de for Peach Payments. The South African Competition Commission granted approval for the deal in May, with all customary requirements met in August, and funds successfully transferred earlier this month.