FinTech company ChannelVAS has secured $5m in funding from investment firm Convergence Partners.
ChannelVAS provides mobile financial services across Sub-Saharan Africa and beyond.
“We are very pleased to have been able to top up our investment in ChannelVAS,” said Brandon Doyle, CEO of Convergence Partners, in a statement seen by IT Web. “This is a business we feel particularly excited about as it ticks a number of boxes for us as an investor; the success of the business demonstrates the capacity of digital data and AI technologies to deliver meaningful and robust solutions to meet the real financial needs of underserved customers in the markets it serves.
“This substantial development impact comes coupled with rapid, profitable growth and dominant scale in the business’s chosen solutions, a focused, top-quality management team, substantial future scale and growth prospects, solid and proven execution capabilities and delivery of market leading metrics.”
More than $1.1bn has been invested in FinTech companies in Africa since 2014, with EY observing Sub Saharan Africa’s unique demographic and economic composition as a magnet for FinTech investment.
Between 2014 and the third quarter of 2019, payment and remittances businesses attracted the majority of that funding, according to FinTech Global’s research.
This segment of the industry attracted 39.8% of the total investment over that period. Marketplace lending was the second biggest sector, having attracted 17.3% of the total investment of the investment in that time.
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