Existing shareholder Goodwell Investments also joined the round with participation of new investors ShoreCap III, LP managed by US-based Equator Capital Partners and UK-based FSD Africa bringing this total round of funding to USD $14 million.
According to Founder and Chairman of LUN Partners Group, Peilung Li, the partnership with MFS Africa will enable a boost in cross-border trade, and open new opportunities for Chinese firms and other partners globally to connect to the African continent.
“We’re excited to have reached this stage with MFS Africa and as we’ve strengthened our relationship, we’re also seeing the massive opportunities for collaboration across our portfolio and network. There are already several collaborative initiatives in the pipeline. With MFS Africa’s experience and reliability in execution, they will surely convert these initiatives into truly valuable products and services for their business partners and customers worldwide.”
With the investment, MFS Africa will have access to additional markets to broaden its reach in providing cross-border, cross-currency, and cross-network solutions to merchants, mobile network operators, and money transfer companies. The new partners will also bring expertise and resources to help reinforce MFS Africa’s financial inclusion mission. LUN Partners Group will connect MFS Africa with opportunities and financial services players in Asia. While a partnership with Equator Capital Partners and FSD Africa will offer MFS Africa deeper links to global and regional financial institutions as well as strong experience in regulator and policymaker engagement.
Goodwell Investments founder and Managing Partner, Wim van der Beek, says “MFS Africa perfectly fits the investment strategy of our uMunthu fund – which is to invest in companies that are building the infrastructure through which large numbers of underserved customers can access more affordable and better financial services.”
“MFS Africa is well placed to reduce the average cost of cross-border transfers into and within Africa. With the projected volumes, this will significantly reduce remittance costs for millions of underserved clients,” van der Beek adds.
Franklin Kennedy, Managing Director of Equator Capital Partners said that MFS Africa is well positioned to scale and deliver mobile-based financial services that are vital to tens of millions of underbanked clients in Africa.
Founder and CEO of MFS Africa, Dare Okoudjou, says that the growth of the MFS Africa network has positioned the company as a full-range provider for digital payments in Africa – effectively opening financial services to those who were previously excluded from traditional banking spaces, and offering simpler, relevant and safer alternatives for those who want to transact and do business in Africa.
“This network growth means that we will continue to increase our impact and drive our mission of financial inclusion across the continent. We’ll also further strengthen our use cases and our position as a trusted digital payments network that is safe, secure, and reliable for the African and global markets.”
“We regard the swift follow-on investments by LUN Partners Group and Goodwell as a testament to our performance and unique potential, and we are particularly excited to welcome Equator Capital Partners and FSD Africa as shareholders. As we expand the business to reach new regions and offer new use cases, these partners will offer invaluable strategic support and guidance,” Okoudjou adds.