FinTech investor 42Markets Group gets $10m from Convergence Partners

FinTech investor 42Markets Group gets $10m from Convergence Partners

42Markets Group, a financial and capital markets FinTech investment group, has received a $10m growth investment from private equity firm Convergence Partners.

This capital injection will help 42Markets accelerate the development and expansion of its portfolio companies. Its portfolio includes digital trading platform Mesh, financial service software developer Andile and foreign currency risk management platform FX Flow.

42Markets CEO Andries Brink said, “We are delighted that our strategy is endorsed by Convergence who has a track record of picking companies that change markets.

“We have built an ecosystem of specialised Fintech businesses, all with their own uniquely scalable, frictionless or decentralised platform or services solution for the distribution of financial assets between responsible parties. With this injection of connected capital, we will be able to grow at the rate that the market for our platforms and services demand of us.”

Convergence Partners is a private equity firm that is focused on the technology sector across sub-Saharan Africa. This investment comes shortly after it closed its Convergence Partners Digital Infrastructure Fund on $296m.

Commenting on the funding round, Convergence Partners CEO Brandon Doyle said, “This is one of our first investments in the digital transformation of financial markets. We see 42Markets as an emerging winner in this space.

“Their group companies have a long track record of consistent double-digit growth and a quality leadership team with deep expertise and experience in the capital markets.”

Earlier in the month, Vesey Ventures, an early-stage venture capital firm, closed its debut fund on $78m, which will focus on FinTech companies. The investment vehicle will invest into early-stage FinTech and technology companies where opportunities for early partnerships with financial incumbents exist.

Elsewhere, The Business Development Bank of Canada (BDC) launched a new $150m fund aimed at investing in Canadian firms advancing technologies towards climate goals.

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