Peach Payments’ African fintech power play

The African fintech landscape witnessed a significant shift on 22 July 2024, as digital payments service provider Peach Payments announced its acquisition of custom software development firm Operativa, a move that sends ripples through the continent’s burgeoning financial technology sector.

This strategic purchase, coming on the heels of Peach Payments’ US$30M million funding round led by the Apis Growth Fund II last year, marks a significant milestone in the company’s ambitious growth trajectory.

At the heart of this acquisition lies a story of collaboration turned partnership. Since 2022, Operativa has been the unseen hand behind many of Peach Payments’ core systems, quietly laying the foundation for the company’s rapid expansion across Africa. Now, with the deal sealed, Operativa’s entire team will be integrated into Peach Payments, with co-founders Dayne Olivier and Ben Janecke stepping into Principal Engineer roles.

Rahul Jain, CEO and Co-Founder of Peach Payments, views the acquisition as a natural progression of their existing relationship. “Operativa has been a trusted partner since the very beginning,” Jain explains. “The opportunity to acquire the business was not only a strategic decision but felt like an inevitable next step in our journey together.”

This move is more than a mere consolidation of resources; it’s a calculated stride towards accelerating Peach Payments’ growth strategy. By bringing Operativa’s specialised skills and developers in-house, the company aims to supercharge its capacity for innovation and expansion across the African continent.

For Olivier and Janecke, the decision to sell represents a vote of confidence in Peach Payments’ vision. “We believe that the business has what it takes to become the undisputed payments leader in Africa,” Olivier states. “We see this acquisition as a call up to the winning team.”

The sale was influenced by various factors, including their existing relationship with Peach Payments and current market conditions. Janecke adds, “We were able to build something really special with Operativa. We made significant strides working with Peach Payments as our partner, and we are confident that as an integrated business, we’ll be able to achieve even more.”

This acquisition comes at a pivotal time for Peach Payments. The additional capital from the Apis Growth Fund II is enabling the company to accelerate its product development and expansion across Africa. Jain elaborates, “Operativa has the people, skills, and intricate knowledge that comes from having worked with us on developing our systems, allowing us to hit the ground running together on some really exciting new projects.”

The move also reflects broader trends in the African fintech landscape. As the continent continues to leapfrog traditional banking infrastructure in favour of digital solutions, companies like Peach Payments are positioning themselves to meet the growing demand for seamless, reliable payment systems.

Peach Payments’ focus on making online commerce and digital payment acceptance more accessible across Kenya, Mauritius, and South Africa aligns with the continent’s push towards financial inclusion. The company’s toolkit, which enables businesses to accept, manage, and disburse payments through web and mobile platforms, is particularly relevant in a region where mobile money and digital payments are rapidly becoming the norm.

As the fintech sector in Africa continues to evolve, acquisitions like this one are likely to become more common. They represent a way for companies to quickly acquire talent and technology, enabling them to stay competitive in a fast-moving market.

The full acquisition is expected to be completed by August, marking the beginning of a new chapter for both Peach Payments and the Operativa team. As they join forces, the industry will be watching closely to see how this strategic move shapes the future of digital payments in Africa.

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