Zeepay, a leading Ghanaian fintech, has just bagged a US$7.9mn Series A.0 fundraising round. The funding is a hybrid of both equity and balance sheet funds to support its operations.
Zeepay enables digital remittances from the diaspora to mobile wallets, bank accounts, and visa cards across 20 markets in Africa.
The fundraising was led by I&P, an impact investing group with over US$250mn in assets under management in the amount of US$3mn, and supported by ARK Holdings, a privately held family investment portfolio on behalf of Andrew Takyi-Appiah (Managing Director) and Zoe Takyi-Appiah in the amount of US$800k.
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GOODsoil VC, an African-focused early-stage venture capital firm committed a follow-on investment to the tune of US$800k and was advised by Obsidian Achernar, a financial services firm licensed by the Bank of Ghana.
The transaction advisors for this raise were Verdant Capital and JLD & MB Legal Consultancy. The company raised a debt of US$3.3mn to drive balance sheet activities mainly for
liquidity purposes which were led by Absa Bank Ghana in the amount of US$1.8mn and US$1.5mn supported by First National Bank Ghana.
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Zeepay, prior to the fundraise had efficiently deployed a total of about US$450k since its go-to-market in May 2016 to achieve a cumulative average growth rate of about 146 percent during the 5 years leading to these transactions.
‘An exciting story on the continent, full of hope and inspiration for the New African – that is the young African looking to chart their own path through startups across the Continent”, said Andrew Takyi-Appiah, Managing Director and Founder of Zeepay.
He added that: “Our raise of US$7.9mn in Series A.0 gives Zeepay a strong capital table, ahead of closing our Series A.5 in the coming months. I am delighted to mention that the raise is coming at a time when we have successfully moved into our new Commercial Property in Accra. Our performance, I believe, is attributable to the Grace of God. Indeed, it is my wish that our Founding Chairman, Dr. Anthony Kwasi Appiah, was here today as we sign this deal. He played a pivotal role in getting the company to where it is today. May his soul continue to rest in peace. I would also like to take the opportunity to thank Mr. Kwame Achampong-Kyei and the GLICO Group for their diligent support over the last 5years.”
Zeepay Chairman Mr. Yankey noted: “Our strategy remains to drive our remittance to digital assets agenda across Africa and the Caribbean and we are excited by the rate of expansion. We have a number of strategic acquisitions lined up and anticipate closing before year end. We look forward to being able to expand our operations beyond our current 20 countries and increase our active 30-day business from 13 markets to 20 plus markets across Africa. Indeed, what we celebrate today could not have been possible without the passing of the Payment Systems Act 2019, which has been a very progressive Government initiative.”
What You Need To Know About Zeepay
Founded in 2014 by Andrew Takyi-Appiah, Zeepay focuses on using digital rails to connect digital assets. The company has a footprint in more than 20 African markets and, in April 2020, became the first indigenous company to be awarded the Electronic Money Issuer (EMI) license to operate as a mobile financial services company by the Bank of Ghana, the regulator of banking and financial services.
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