Interswitch, Africa’s top payment gateway, has received a $110 million investment from LeapFrog Investments and Tana Africa Capital to help the company expand across the continent and provide digital payment services.
This was announced via Twitter.
What companies have to say
Although the company didn’t confirm the amount it received from the firms separately, the two private investment firms said in the statement, “The exact terms of the transaction haven’t been disclosed. We can’t comment on that for now,”.
Mitchell Elegbe (CEO of Interswitch) released a statement in which he expressed his excitement at the inclusion of both companies on the board.
As we work together to improve the African payments landscape, we are thrilled to welcome Tana and Leapfrog on board.
Mitchell Elegbe, Interswitch CEO
LeapFrog and Tana want to engage with management to continue driving Interswitch’s pan-African strategy, which includes recruiting new clients and developing new products to promote a financial inclusion goal, alongside existing investors.
Interswitch has been disrupting Nigeria’s cash economy for 20 years, driving digital payments and encouraging financial inclusion. This investment by LeapFrog affirms the formidable talent at Interswitch and how well-placed it is to seize the significant opportunity in Africa’s evolving digital payments landscape
Karima Ola – LeapFrog Investments, partner, head of Africa financial services
Mark Tindall, Managing Director and CEO, Tana Africa said, “Interswitch has developed a strong position at the nexus of Nigeria’s payments ecosystem, underpinned by an offering which is primed for continued growth. The business’ evolution is testament to management’s track record and tenacity. Alongside LeapFrog, we look forward to supporting Interswitch’s next chapter through continued product innovation and growth across the African continent.”
Interswitch’s last publicly publicised funding round, when Visa paid $200 million for a 20% share in the company, was almost three years ago.
Interswitch is one of Africa’s major electronic payments and infrastructure companies, valued at $1 billion. The fintech is well-known for its point-of-sale terminals, online consumer payment platforms, Quickteller, and Verve, Africa’s largest domestic debit card scheme, which has issued over 35 million active cards since its introduction.
Last November, the company partnered with Interstellar in order to develop blockchain infrastructure services throughout Africa. This partnership was innovative and collaborative and aimed at providing enterprise-grade, impact-focused services using blockchain technology across Africa.
Interswitch announced plans to become public for the very first time in 2016. In an interview with TechCrunch that year, Elegbe stated that Interswitch would seek dual-listing on both the Nigerian and London stock exchanges. However, the report about the 20-year-old fintech company’s listing on both exchanges was shelved after receiving funding from Visa.