MFS Africa secures additional $100 million in Series C funding

MFS Africa, a pan-African financial technology network, has announced the closing of a $100 million Series C extension, only a week after it announced the takeover of US-based Global Technology Partners. The new funding more than doubles the company's first $100 million Series C round.

Admaius Capital Partners led the deal, which included both equity and debt, while Vitruvian Partners and AXA Investment Managers' alternative investments arm (AXA IM Alts) were new participants in the extended funding round. AfricInvest FIVE and CommerzVentures, two existing investors, contributed additional funds, while Stanbic IBTC Bank Nigeria and Symbiotic supplied debt funding.

The newly secured investment, according to the digital platform, will allow the company to expand beyond Africa into Asia while also creating cross-border payments collaborations with Africa through a partnership with LUN Partners as it enacts its growth strategy for BAXI, a startup it acquired late 2021.

“The strength of our business model is grounded on building a lasting digital infrastructure that unleashes and simplifies economic activities across the continent through any-to-any interoperability,” said Dare Okoudjou, the founder and CEO.

 “Our multiple initiatives and solutions are providing access to Africans, at home and in the diaspora. We are building MFS Africa into a safe, sound, scalable and high-impact pan-African payment infrastructure that will facilitate Africa’s rapidly growing commerce, both now and in the future.”

MFS Africa, which is recognized for its acquisition-led expansion strategies, recently purchased Global Technology Partners (GTP) of the United States for $34 million in cash and stock. The London-based startup, which focuses on Africa, links over 320 million mobile money wallets in 35 African nations and 700 corridors. Despite these cross-border connections, millions of Africans are unable to use their mobile payment accounts to pay for foreign subscription-based services like netflix and Amazon.

GTP is a mobile payment technology company. Its prepaid and mobile payment network, according to PitchBook, connects many prepaid cards with bank accounts and allows customers to make prepaid purchases for online shopping and ATMs.

Last year, MFS Africa also agreed to buy Capricorn Digital, Baxi's parent company, for an unknown sum.

The all-cash deal aims to help MFS expand into Africa's largest economy, where its impact has been limited.  Capricorn will be renamed MFS Africa, but the company's primary product, Baxi, will remain unchanged. In November, the firm raised $100 million in Series C funding, with $70 million in equity and $30 million in debt. It stated that it is striving to establish compatibility between payment systems in Asia and Africa, beginning with Nigeria and then moving throughout the continent.

Meghan Taylor, an ex-partner at Boston Consulting Global who now serves as the company's chief of staff, and Julian Adkins, ex-Africa CFO at telecom operator Millicom, who serves as the company's group chief financial officer, are two of the fintech's recent employees.