Ozow, a fintech startup based in South Africa, has raised a US$48 million Series B funding round to help it grow its product offering and enter new markets.
Ozow was founded in November 2014 by Thomas Pays, Mitchan Adams, and Lyle Eckstein, who saw a need for an efficient and secure online payment system in the local market and rebranded from i-Pay in April 2019 to focus on assisting SMEs with payments.
Millions of merchants and consumers can use QR codes, point-of-sale, e-commerce, e-billing, and peer-to-peer payments because the company makes alternative payment alternatives simple, fast, and safe. MTN, Vodacom, the Shoprite Group, Takealot, and Uber are just a few of Ozow’s clients.
Tencent, Endeavor Catalyst, and Endeavor Harvest Fund are among the investors in Ozow’s US$48 million Series B round.
The latest round of funding will go toward Ozow’s attempts to transform the banking ecosystem and expand financial access to the underbanked. It will also help Ozow solidify its position as one of the continent’s leading payment providers and expand into new markets.
“It’s an honour to bring on board Tencent, Endeavor Catalyst and Endeavor Harvest Fund. This is a validation of our role in transforming the banking industry through the development of innovative, convenient, and more inclusive payment solutions for everyone,” said Pays.
Ozow has experienced 100% year-over-year growth since its Series A fundraising round in June 2019. It now handles over $100 million in monthly transaction volume over a network of thousands of merchants. The company’s user base continues to expand, with more than 120,000 new users joining the platform each month.
The Series B funding round, according to Pays, will support the company’s growth plans and regional expansion across Africa.
“We’re also heavily focused on expanding our product offering. This will largely be driven through the development of new products, as well as a strong focus on strategic investments that include mergers and acquisitions,” he said.