FinTech Deals Made in August Set to Transform the Sector in Africa

FinTech has grown rapidly over the past few years attributable to the high mobile penetration rate in Kenya and Africa as a whole with the rate standing at 44 percent.

According to Cytonn Investments, investors will continue to show interest in the FinTech sector in Sub-Saharan Africa as more businesses seek to enhance efficiency and reduce costs by incorporating technology in their operations.

August saw two mega deals worth millions of shillings in the FinTech sector signed in Africa with one being signed here in Kenya.

Juhudi Kilimo Raises 252 Million shillings in Equity Capital from Incofin CVSO

Juhudi Kilimo, a Kenyan based microfinance institution, raised EUR 2.2 million (252.2 million shillings) in equity capital from Incofin CVSO, a fund managed by Belgian based Incofin Investment Management, for an undisclosed stake.

This will be Incofin’s first equity investment in the country, adding to its expansive portfolio, which includes over 325 investments in 65 countries, with a combined value of over USD 1.0 billion, focused on growing the financial services industry in developing countries.

TechAdvance Raises 103 Million shillings in Equity Funding from Lamar Holding

TechAdvance, a Nigerian based payment application development company, raised USD 1.0 million (103.5 million shillings) in equity funding from Lamar Holding, an energy investment company based in Bahrain.

TechAdvance will use this funding to support its expansion strategy, aimed at widening its coverage in Africa as well as reaching out to other markets globally, having gotten approval from the Central Bank of Bahrain to operate a payment solutions service business, in addition to a similar license from the Central Bank of Nigeria, indicating that the firm intends to leverage the partnership with Lamar Holdings to cross into the Middle Eastern market.

Read Also: Notable FinTech Deals That Made Headlines in H’1 of 2019 in Kenya