MFS Africa Raises US$100m Series C to Boost Expansion

MFS Africa Raises US$100m Series C to Boost Expansion

by 10 November 2021

In another big round this week, pan-African digital payments gateway MFS Africa has secured US$100 million in a Series C equity and debt round, the company announced in a statement.

The financing is split US$70 million for equity and US$30 million from debt, according to a TechCrunch report. It brings the total equity funding raised so far by the company to US$95 million, in addition to the US$30 million debt funding.

The round was co-led by new investor AfricInvest FIVE, alongside existing backers Goodwell Investments and LUN Partners. Participating investors included CommerzVentures, Allan Gray Ventures, Endeavor Catalyst, Endeavor Harvest and ShoreCap III.

This is CommerzVentures’ first investment in Africa, the statement said. Meanwhile, the debt facility was provided by Lendable and Norsad.

Funding will be used to drive expansion efforts at the company, with additional regional offices opening in African, US and Chinese markets, the statement said. The company is looking to boost hiring in Africa and at its global locations as well. Part of the funding will also be channeled towards bolstering Governance, Risks and Compliance (GRC) functions, as well as the treasury and liquidity pool, at the company.

MFS Africa has established its new HQ at London

The statement noted that the funding comes in the backdrop of a string of acquisitions and investments in Africa. This includes the recent acquisition of Nigerian super-agent network Baxi, as well as new offices. In the past year, MFS Africa has opened offices in Abidjan, Kampala, Kinshasa, Nairobi and Lagos, and also set up its headquarters in London.

MFS Africa connected over 320 million mobile money wallets through a network that spans 180 mobile money schemes, banks, money transfer operators, and over 250 enterprises. The company is focused on increasing interoperability between payment schemes, borders and currencies.

It has also been working with LUN Partners to establish cross-border payment gateways between Africa and China, including through M&A deals, Peilung Li, Chairman of LUN Partners, noted.

Featured image: edited from Unsplash

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