(Ecofin Agency) - The Nigerian-based private equity firm African Capital Alliance (ACA), which focuses its operations in sub-Saharan Africa, has invested $20 million in Accelerex Holdings, a firm that finances and supports African fintech companies.
The transaction was made through ACA's fourth investment fund- CAPE IV. It is a $570 million fund focused on West Africa and interested in many sectors such as health, energy, infrastructure, and agribusiness. With this investment, Capital Alliance Private Equity IV “will become a strategic partner in Accelerex and will hold three seats on the company's board,” Accelerex said.
The funds will be used to support Accelerex's expansion in Côte d'Ivoire, Kenya, Tanzania, and South Africa over the next 24 months. Accelerex Holdings, the parent company of Nigerian electronic payment solutions provider Global Accelerex Limited, intends to develop new products.
To strengthen its banking agent business, Accelerex acquired a majority stake in SLS Microfinance Bank. Its subsidiary Accelerex Network Limited, dedicated to the provision of financial services, has successfully attracted 9,000 agents in the last twelve months and expects to reach 40,000 agents by the end of 2021.
Paul Kokoricha, Partner at ACA, says “Accelerex's strong business model and its agile and dynamic management team makes it the ideal African Fintech group to back. We are thrilled about this alliance and are happy to bring our experience to the board."