MFS Africa’ $100 million series C fund raising

Onafriq Raises US$100 Million in Equity and Debt Financing Round

London – 10 November 2021: Onafriq, Africa’s largest digital payments network, has raised US$100 million through an equity and debt financing round. The fundraising marks another milestone in Onafriq’s expansion, following a series of acquisitions and investments in other African fintechs, including the recently announced acquisition of Baxi in Nigeria.

New Investors and Funding Details

The new investor, AfricInvest FIVE, is one of the most experienced private equity investors on the continent and co-led the round with existing investors Goodwell Investments and LUN Partners Group (“LUN Partners”). CommerzVentures, Allan Gray Ventures, Endeavor Catalyst, and Endeavor Harvest also joined the round as new investors, while ShoreCap III returned as an existing investor with other funds. Providers of debt financing included Lendable and Norsad.

Onafriq’s Vision and Expansion Plans

Onafriq’s vision is to make borders matter less, which it enables through interoperability across payment schemes, borders, and currencies. Over the last year, Onafriq has accelerated its expansion efforts across Africa. The company has opened new offices in Abidjan, Kampala, Kinshasa, Nairobi, and Lagos, in addition to establishing London as its new headquarters. Onafriq recently signed an agreement to acquire Baxi, a leading super-agent in Nigeria, and plans to build Baxi into a key node, allowing regional payments into and from Nigeria.

Onafriq is continuing to expand its network and will be opening additional regional offices in key African markets, as well as in the USA and China. The new funding will enable Onafriq to hire additional talent in Africa and globally to support its exponential growth.

Governance, Risk, and Compliance (GRC) Strengthening

Furthermore, part of the new funding has been earmarked to continue strengthening the company’s Governance, Risks and Compliance (GRC) functions as well as its treasury and liquidity pool. Onafriq will be continuing to invest in fintechs across the African payment ecosystem.

Statements from Onafriq’s Leadership and Investors

Dare Okoudjou, Founder and CEO of Onafriq, said: “This round of funding marks the beginning of the next phase in our growth. We greatly appreciate the renewed and continued confidence in us by our longstanding investors LUN Partners, Goodwell Investments, ShoreCap III, and others. We are also delighted to welcome our new investors AfricInvest, CommerzVentures, Endeavor Catalyst, and Endeavor Harvest on board. This new fundraising round further demonstrates our commitment and the scale of our ambitions. For our clients across Africa and beyond, this is also a validation of the choice they have made to partner with us in building a network of networks that make instant cross-border payments as simple as making a phone call. We look forward to continuing to work with them to expand and deepen that network in the years to come.”

AfricInvest's Role and Support

The pan-African investment platform, AfricInvest, has in-depth expertise in the African financial sector and a significant footprint across the continent, having made over 180 investments across more than 25 markets. As an established and highly respected private equity firm, it provides Onafriq with access to the considerable expertise of its African growth strategy and its advocacy efforts around the inclusion of less developed but high-potential markets.

Onafriq Strengthens EU Financial Links

The series also saw Frankfurt-based fintech specialist investor CommerzVentures make its first investment in Africa. This partnership offers Onafriq closer links with EU financial institutions and helps strengthen the company’s financial services capabilities and offerings.

Investor Feedback on Onafriq’s Growth

Discussing the investment, Julius Tichelaar, Partner at AfricInvest FIVE, said: “Onafriq provides broad access to a large range of payment services for individuals and companies on the African continent, including remittance and trade-related financial services. This resonates well with AfricInvest FIVE’s financial inclusion strategy. Cross-border payments remain an important challenge in many African markets today, and Onafriq is uniquely positioned to confront this. We are excited to join Onafriq’s world-class management team on its mission and to support its growth journey.”

Wim van der Beek, Managing Partner at Goodwell Investments says: “We made our first investment in Onafriq four years ago, and throughout this time their team has consistently delivered on their plans. Over the years they have built a powerful platform, a strong network of partners, and a world-class passionate and diverse organisation. We are delighted to co-lead their Series-C round together with AfricInvest FIVE. We look forward to continuing to support Onafriq in their next stage of growth, delivering on their vision to deliver affordable payments and other financial services across Africa and beyond.”

Peilung Li, Chairman of LUN Partners Group, added, “We are very proud to be a partner to Dare and Onafriq and have continuously supported the Company through multiple rounds of investment since we led the Series-B round. We have also been working closely with Onafriq to build cross-border payment gateways between Africa and China and have supported the Company through several transformative M&A transactions. I am excited to see Onafriq continue to build its financial ecosystem and become a dominant player in the region.”

Onafriq’s Hub Connecting Millions Across Africa

In 2010, Onafriq forecasted that mobile money wallets would be the most dominant digital wallet in Africa. Today, its hub connects over 320 million mobile money wallets. Through its network of over 180 mobile money schemes, banks, money transfer operators, and over 250 global enterprises, millions of Africans can exchange value with each other and the world.