Accelerex Holdings announced earlier today that it has entered into an investment agreement with Africa Capital Alliance which will see the African equity firm investing the sum of $20 million in the company.
The investment, which will be made through the Capital Alliance Private Equity (CAPE) IV Fund, will accord Africa Capital Alliance the opportunity to take up three seats on Accelerex Holdings’ Board.
According to a lengthy statement that was seen by Business Elites Africa, the funding will enable Accelerex Holdings to scale its operations, especially Global Accelerex Ltd, its fintech subsidiary which currently offers digital payment services to Nigerians.
“I am very excited by the ACA investment. In our quest for the right investment and strategic partner, we were looking for a company that shares our vision to empower businesses in Sub-Saharan Africa to exceed all their customers’ payment expectations. This partnership will help Accelerex to aggressively expand into Africa and accelerate product development. I see our vision becoming a reality with this move,” said Tunde Ogungbade, the Chief Executive Officer of Global Accelerex Ltd.
A Partner at Africa Capital Alliance, Paul Kokoricha, who also commented on the development, praised Accelerex for its ‘strong business model’ and a a ‘dynamic management team’. He also noted that he and the rest of the Partners are “thrilled about this alliance and are happy to bring our experience to the board”.
Incorporated in 2008, Accelerex did not commence its digital payment operations until October 2013 after it finally obtained approval from the Central Bank of Nigeria. Since then, it has created a name for itself as a leading fintech firm, supporting an estimated 95% of Nigerian banks and about 90,000 merchants.
In 2019, the company expanded its operations into Ghana. It also has plans to open shops in South Africa, Tanzania Kenya, and Cote d’Ivoire within the next two years.