Africa’s top payment gateway, Interswitch, raises $110 million. LeapFrog Investments and Tana Africa Capital invested $110 million in Interswitch to assist the company in expanding across Africa and delivering digital payment services. According to a statement made on Wednesday by the two private investment firms. The digital payment firm is Africa’s second unicorn, and its current funding will help it expand its digital payment services across the continent.
Interswitch, founded in 2002, revolutionized Nigeria’s cash-based economy by integrating electronic payments and switching services. When Interswitch first joined the Nigerian financial landscape, it was estimated that only about 200,000 Nigerians had an internet connection, with many still getting used to their new phones. Interswitch became Nigeria’s first e-payment service to be connected to all banks, although other e-payment providers had secured operating licenses six years before Interswitch. Its consumer-facing products include Quickteller, an online consumer services platform for bill payments and airtime purchases, and Verve, a pan-African debit card scheme available in 185 countries thanks to a collaboration with Discover.
Interswitch’s last investment round occurred in 2019, when VISA bought a 20% share in the company for $200 million, making it Africa’s second unicorn. Even back then, its Verve and Quickteller products were being sold in 23 African countries, with physical locations in Gambia, Uganda, and Kenya. Interswitch is now one of Africa’s largest electronic payments and infrastructure companies, valued at $1 billion.
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Interswitch CEO Mitchell Elegbe expressed his delight at the addition of both firms to the board of directors in a statement. We are delighted to welcome Leapfrog and Tana to our team as we seek to shape the future of Africa’s payments landscape.
“Interswitch has created a solid position at the nexus of Nigeria’s payments ecosystem, anchored by a solution prepared for ongoing growth,” said Mark Tindall, Managing Director and CEO of Tana Africa. The company’s success results from the management’s perseverance and track record. We look forward to supporting Interswitch’s next chapter, alongside LeapFrog, through continuous product innovation and expansion across Africa.”
