Ghanaian Fintech startup Zeepay, has announced the completion of a USD7.9 million Series A.0 funding. The funding is a hybrid of both equity and balance sheet funds to support its operations.
Zeepay enables digital remittances from the diaspora to mobile wallets, bank accounts and visa cards across 20 markets in Africa.
The fundraise which is one of Africa’s largest Series A raise was led by I&P, an impact investing group with over USD250m in assets under management in the amount of USD3 million, and supported by ARK Holdings, a privately held family investment portfolio on behalf of Andrew Takyi-Appiah (Managing Director) and Zoe Takyi-Appiah in the amount of USD800,000.
GOODsoil VC, an African-focused early-stage venture capital firm committed a follow-on investment to the tune of USD800,000 and were advised by Obsidian Achernar, a financial services firm licensed by Bank of Ghana.
The transaction advisors for this raise were Verdant Capital and JLD & MB legal Consultancy. The company raised a debt of USD3.3 million to drive balance sheet activities mainly for liquidity purposes which was led by Absa Bank Ghana in the amount of USD1.8 million and USD1.5 million supported by First National Bank Ghana.
Zeepay, prior to the fund raise had efficiently deployed a total of about USD450,000 since its go-to-market in May 2016 to achieve a cumulative average growth rate of about 146 percent during the 5 years leading to these transactions.
‘‘An exciting story on the continent, full of hope and inspiration for the New African – that is the young African looking to chart their own path through startups across the Continent”, said Andrew Takyi-Appiah, Managing Director and Founder of Zeepay.
“Our raise of USD7.9 million in Series A.0 gives Zeepay a strong capital table, ahead of closing our Series A.5 in the coming months. I am delighted to mention that the raise is coming at a time when we have successfully moved into our new Commercial Property in Accra. Our performance, I believe, is attributable to the Grace of God. Indeed, it is my wish that our Founding Chairman, Dr. Anthony Kwasi Appiah, was here today as we sign this deal. He played a pivotal role in getting the company to where it is today. May his soul continue to rest in peace. I would also like to take the opportunity to thank Mr. Kwame Achampong-Kyei and the GLICO Group for their diligent support over the last 5years.” he added.
Zeepay Chairman Mr. Yankey noted that the company’s strategy remains to drive its remittance to digital assets agenda across Africa and the Caribbean.
”We have a number of strategic acquisitions lined up and anticipate closing before year end. We look forward to being able to expand our operations beyond our current 20 countries and increase our active 30-day business from 13 markets to 20 plus markets across Africa. Indeed, what we celebrate today could not have been possible without the passing of the Payment Systems Act 2019, which has been a very progressive Government initiative.”