The news:
- Zeepay, a Ghana-based remittance and mobile money service company, has announced closing a $3 million equity investment from Verdant Capital Hybrid Fund. This marks Verdant’s fourth investment in just over two years.
- The ten-year-old company, which has raised more than $23 million since it launched, will use the new capital injection to strengthen its financial position in anticipation of its high growth in 2024.
Zeepay is a non-telco mobile money operator in Africa, with licences in Ghana, Zambia, Ivory Coast, Sierra Leone, Gambia, and Barbados. It specialises in remittance termination into mobile wallets and is open to all networks and partners.
The Ghanaian fintech says it has over 200 employees, with offices across Africa, Europe, and the Caribbean. As of 2022, the company was already present in 23 countries.
The mobile money challenger terminates remittances into mobile money wallets across all networks, including its wallets available in the six markets it currently operates globally.
After MTN MoMo, Zeepay had the second-highest revenue in mobile finance services in 2022. Compared to its peers, the mobile money business reportedly reached profitability earlier in its lifecycle. It has since maintained strong profitability even as it expands and diversifies its footprint and revenue base.
Andrew Takyi-Appiah, the Managing Director of Zeepay, noted that the Africa-focused fintech is happy to welcome onboard investor Verdant Capital Hybrid Fund, its new shareholder, into the mobile money business.
This move makes the investment firm the fifth institutional shareholder to join Zeepay in less than three years since the initial $7.9 million equity investment by Investisseurs & Partenaires (I&P).
On the investment, Kwabena Appenteng, Director at Verdant Capital, stated that Zeepay provides his investment firm with a solid track record of hard currency earnings through its remittance-to-wallet business model and growth opportunities throughout Africa. He attributes the achievement to "the strength of the management team at Zeepay."
