$110M in investment from Interswitch, LeapFrog and Tana Africa Capital

African payments firm Interswitch has secured a $110 million joint investment from LeapFrog Investments and Tana Africa Capital to expand digital payments services across Africa.Two private investment firms in a statement on Wednesday.

Interswitch has not confirmed the amount received from the company. “The exact terms of the transaction are has been revealed. Us I can’t comment on that right now,” a company spokesperson told TechCrunch about the investment and Interswitch’s new valuation..

However, Interswitch Group CEO Mitchell Elegbe said in a statement, “We are delighted to be joining LeapFrog and Tana as we continue to work to advance the future of the African payments landscape.”

The news comes almost three years after Interswitch’s last public funding round, when Visa paid $200 million for a 20% stake in the company. At $1 billion (final valuation), Interswitch is one of the largest e-payments and infrastructure companies in Africa. Fintech powers many parts of Nigeria’s online banking system and is best known for its point-of-sale terminals, online consumer payment platform, Quickteller, and Verve, Africa’s largest domestic debit card system issuing over 35 million active cards. card after release.

In 2016, Interswitch mocked the idea of ​​going public. In an interview that year, CEO Elegbe told TechCrunch that the company would pursue a dual listing on the London and Nigeria stock exchanges..

subsequent Reports of 20-year-old fintech listings on major exchanges also appeared in 2019 and 2020. but the plan got shoveled Following Visa’s investment, I sat in the back seat.

As much as the Interswitch exit is a win for the African tech ecosystem, it’s also a win for the company, its management, and especially its largest shareholder, UK-based Ignite Holdco Limited (comprised of Helios Investment Partners and TA Associates). . But since that’s not coming soon, the holding company looked for an immediate alternative. In addition to injecting new capital into Interswitch’s business, some of the new investments include the acquisition of shares in LeapFrog and Tana from existing shareholders, including Ignite Holdco Limited.

Together with existing investors, LeapFrog and Tana will continue to advance Interswitch’s pan-Africa strategy, which includes acquiring new customers and building new products to support its financial inclusion strategy, working with management.

“A pioneer in the African payments ecosystem, Interswitch has been disrupting the cash economy, driving digital payments and promoting equitable financial integration in Nigeria for 20 years. This investment by LeapFrog confirms Interswitch’s strong talent and position to seize significant opportunities in Africa’s evolving digital payments landscape.

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