adumo, an independent payments processor, has raised R190m to further enhance its growth and expansion plans across Sub-Saharan Africa.
According to a report from FinTech Finance News the round included an equity raise from adumo’s current shareholders, Apis Partners, Crossfin Holdings and IFC’s FinTech division as well as a debt facility provided by Investec.
The fresh funding will be used to increase adumo’s shareholding in GAAP to 80%, which will enhance adumo’s growth and expansion plans.
GAAP specialises in the international hospitality industry, providing restaurants, hotels and retail franchises integrated solutions.
adumo, which calls itself the “catalyst from growth” in Africa, said it will also increase its shareholding in Switchpay, an alternative payments provider, to 100%.
Switchpay, which was incorporated into the adumo customer facing brand in August 2022, will provide adumo with a lending technology platform for processing buy now, pay later transactions and other consumer credit line options.
Adumo also expects to hite an additional 100 employees, bringing its total to over 1,000 people.
Paul Kent, CEO of adumo, said, “Local consumers are following a global trend of demanding digital and flexible methods of making cashless payments, through alternative methods. Likewise, merchants require financial solutions to grow and streamline their businesses through the use of alternative payment options that are integrated into their businesses.
“The timing was therefore perfect for adumo to further finance our assets in order to develop and provide our value added financial products to our clients.”
Recently, FinTech Global Research revealed that African FinTech deal activity slowed down in Q3 this year, with only 28 deals announced.
African FinTech companies raised $94m in Q3 which is the lowest quarter so far this year. Deal activity has also dropped, pushing Africa’s expected total deals for 2022 to 228 which is 23pp lower than previous quarter predictions.
Although the lack of deals and investment in the region is disappointing, seed deals accounted for 69% of total deals in Q3, which shows that Africa is producing a high number of innovative companies.
Copyright © 2022 FinTech Global
