MICROCAPITAL BRIEF: I&P Leads $8m Debt, Equity Funding Round for Zeepay to Expand Mobile Money Services in Africa

Investisseurs & Partenaires (I&P), a France-based investor in small and medium-sized enterprises (SMEs) in sub-Saharan Africa, recently led a funding round for Zeepay, a financial technology (fintech) company with offices in Ghana and the UK, to expand Zeepay’s digital wallet services to more countries in Africa. The funding round comprises USD 3 million in equity from I&P, USD 800,000 in equity from Ark Holdings, USD 800,000 in equity from GOODsoil Venture Capital, a loan of USD 1.8 million from Absa Bank Ghana, and a loan of USD 1.5 million from First National Bank Ghana.

The Founder and Managing Director of Zeepay, Andrew Takyi-Appiah, stated that the new funding “gives Zeepay a strong capital table, ahead of closing our [next funding round] in the coming months.”

Founded in 2014, Zeepay offers domestic and international fund transfers via digital wallets in 23 countries in Africa. Zeepay wallets can be paired with the company’s Remit2save service, which offers cash loyalty payments of up to 5 percent. The firm also provides “microinsurance coverage as an incentive to build and maintain a healthy saving habit.” This insurance provides clients with approximately GHS 5,000 (USD 858) per month if they become seriously ill. During 2020, the firm facilitated 2.4 million transfers with a total value of USD 400 million.

Launched in 2002, I&P disburses investments ranging in size from EUR 30,000 (USD 34,000) to EUR 3 million (USD 3.4 million). As of 2020, the organization reported activity in approximately 15 countries in sub-Saharan Africa. Data on the volume of I&P’s funds is not available.

Verdant Capital, which provides capital raising and financial advisory services as well as assisting in mergers and acquisitions, and Ghana-based law firm JLD & MB Legal Consultancy advised Zeepay on the transaction. Verdant Capital has offices in the Democratic Republic of Congo, Ghana, Mauritius and South Africa.

JLD & MB Legal Consultancy is a Ghana-based law firm that serves corporations, financial institutions, multinationals and state-owned enterprises. The firm’s specialties include acquisitions and mergers; advisory services for foreign direct investment; banking and finance; energy, oil and gas transactions; general commercial and corporate transactions; natural resources law; and taxes.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

Business & Financial Times article
https://thebftonline.com/30/06/2021/zeepay-raises-us8m-in-series-a-0-round-to-drive-growth/

Zeepay homepage
https://www.myzeepay.com/

Absa Bank Ghana homepage
https://www.absa.com.gh/

First National Bank Ghana homepage
https://www.firstnationalbank.com.gh/

GOODsoil Venture Capital homepage
https://www.goodsoilvc.com/

I&P homepage
https://www.ietp.com/

I&P 2020 annual report
https://www.ietp.com/sites/default/files/IP-Annual-Impact-Report-2020.pdf

JLD & MB Legal Consultancy homepage
https://www.jldmblaw.net/

Verdant Capital homepage
https://verdant-cap.com/

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