Kenya’s Direct Pay Online Group (DPO) has received a second investment of $5M from the UK based private equity fund, Apis Partners after its initial $10M investment made last year.
The firm will also use the funds to set up operations in Nigeria, Ghana, DRC and Mozambique by the end of 2017 to grow across Africa through mergers and acquisitions and developing its payments technology platform and apps.
According to DPO Group Chairman, Offer Gat, “DPO Group has achieved and exceeded the plans laid out in the first phase of the strategic plan. We have established a presence in 12 African countries namely Kenya, Tanzania, Ethiopia, Uganda, Rwanda, Zambia, Zimbabwe, Malawi, South Africa, Namibia, Botswana, and Mauritius.”
DPO Group has acquired Pay Gate and VCS in South Africa, VCS in Namibia and Botswana, and PayThru in South Africa, and are in the final stages of acquiring an additional company which will be announced later this year.
In Kenya, DPO is said to have tried more than four times to acquire PesaPal but people close to both firms say the acquisition talks have always been strained due to an integrity questions especially on DPO Group’s vanity metrics and certifications.
In South Africa, DPO Group has further completed the first phase of integration of PayGate’s systems, and is revamping its DumaPay multiple payment app.
Direct Pay Online Group CEO, Eran Feinstein said: “This most recent capital injection will help to further the Group’s strategic plans in the region which will include the establishment of up to 26 branches across Africa, the acquisition of at least one additional company, and the continuation of our technological distribution across Africa.”
Apis Partners is a private equity asset manager that supports growth-stage financial services businesses in Africa and Asia by providing them catalytic growth equity capital.