Nigeria-based payments firm Interswitch secured strategic investments from LeapFrog Investments and Tana Africa Capital.
According to Interswitch, a portion of the funding involves LeapFrog and Tana purchasing shares from existing shareholders, including Ignite Holdco limited.
Financial terms of the transactions were not disclosed.
The fresh capital will support the company’s strategy to enhance the payment ecosystem across the African continent.
LeapFrog and Tana will work alongside existing shareholders to continue to drive Interswitch’s pan-African strategy as the company seeks to beef up its customer base and rollout of new products and services across the continent.
Interswitch founder and group CEO Mitchell Elegbe said: “We are excited to welcome LeapFrog and Tana on board, as we continue our work to advance the future of the African payments landscape.
“The evolution of fintech in Nigeria and the broader sub-Saharan region has been driven by the need to solve challenges and barriers that exist within the traditional financial system.”
Established by Elegbe in 2002, Interswitch currently operates two flagship brands; a debit card scheme called Verve, and multichannel consumer and business payments platform dubbed Quickteller.
The firm claims to have 948 full-time employees across Africa with women making up approximately 40% of the workforce, and 38% of the management team.
In 2019, Visa took a minority stake in Interswitch, making it the most valuable African fintech with a valuation of $1bn.
LeapFrog Investments head of Africa Financial Services Karima Ola said: “LeapFrog is proud to be partnering with Interswitch to further enhance their innovative, digital capabilities to deliver sustainable scale, whilst positively impacting the lives of millions of people and businesses across the region.”
Tana Africa managing director and CEO Mark Tindall added: “Interswitch has developed a strong position at the nexus of Nigeria’s payments ecosystem, underpinned by an offering which is primed for continued growth. “The business’ evolution is testament to management’s track record and tenacity. Alongside LeapFrog, we look forward to supporting Interswitch’s next chapter through continued product innovation and growth across the African continent.”