Velocity Capital Fintech Ventures, a Netherlands-based private equity firm investing in Fintech companies in Europe, Africa, and North America, announced the launch of its USD 120.0 million (Ksh 12.2 billion) venture fund aimed at investing in early-stage companies focusing on banking, payments, credit, and other Fintech areas
According to Cytonn Investments, Velocity Capital, through this fund has already invested in three Fintech companies in Africa.
The three companies are namely Yoco, a South African point-of-sale provider, Mines, a digital Credit-as-a-Service platform for domestic banks, mobile operators, retailers, and payment processors, and, Cellulant, a leading Pan-African digital payments service provider.
Other investments made by Velocity Capital outside Africa are in Prague and Amsterdam.
On June 3rd, 2019, it announced its investment of USD 3.4 billion (Ksh 344.1 billion) in Owlin, a technology company based in Amsterdam and had previously in May 2019 made an investment of GBP 4.0 million (Ksh 459.2 million) in Twisto, a credit and payment solutions provider based in Prague.
With the creation of the fund, Cytonn Investments says that it expects increased investment in fintech companies across Africa and the resultant growth of Africa’s Fintech segment due to increased access to capital.
Cytonn Investments continues to maintain a positive outlook on private equity investments in Africa as evidenced by the increasing investor interest, which is attributed to;
Going forward, the increasing investor interest, stable macro-economic and political environment will continue to boost deal flow into African markets.