South African- based fintech group Adumo has received $15-min in funding from IFC, a member of the World Bank Group, and the IFC Financial Institutions Growth Fund to expand its offering of payment solutions for the underserved SMEs in Africa.
The large investment, placed as preferred shares to fund the growth of the company, will enable the fintech to make digital payment systems more affordable access to small businesses in Africa.
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In a press statement, Paul Kent, CEO at Adumo explains that the funding will enable the fintech to offer its services as a much-needed lifeline to SMEs in Africa with a movement to digital payments.
“The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an all-time high. The funds we have raised from our new equity partners will help us roll out new payment innovations and purpose-based lending services to support consumers and retailers as they navigate an uncertain 2021.”
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What You Need To Know About Adumo
Previously known as Crossfin Transactional Solutions, the fintech rebranded itself to Adumo in June 2020 and has a footprint presence in 14 countries across the continent.
The fintech group owns merchant acquirers Sureswipe and Ikhokha and payment processor Innervation Pan African Payments.
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With a focus on assisting SMEs to move into the digital payments space, Adumo aims to regenerate the continent’s economy by providing a much-needed service for African SMEs. According to reports by Adumo, SMEs employ over 50% of the workforce and contribute an estimated 34% of the GDP but these same businesses do not have access to the tools to grow their business.
Digital and mobile payments can positively contribute to SMEs as it improves customer retention and widen’s customer reach.
Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa explains that the investment into the fintech group is part of the companies commitment to supporting SMEs.
“Through this investment in Adumo, we will be helping small businesses tap into the digital economy, which is more important now than ever before. Digital payments are often the first step for a small business to build a credit history, which opens the way to access further financial services such as financing to grow the business.”
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