Zeepay plans to raise $10m in equity funding to support the creation of new mobile-money hubs in East and Southern Africa, Andrew Takyi-Appiah, co-founder and managing director, told The Africa Report.
The new hubs, which will include processing centres and back offices, are likely to be in Rwanda and South Africa. He adds that the use of Swahili in Rwanda makes it a good platform from which to reach out to other markets in the region.
The company, which has so far grown through local investment, is seeking $10m in new equity funding. Zeepay, advised by the South African office of Verdant Capital, is targeting investment from remittance companies and private-equity firms. Takyi-Appiah says Zeepay aims to close the fundraising round by the end of June.
The money will be used for marketing and distribution, hiring and creating the hubs. Some of it will be also be used as capital paid to enter new markets, such as Gambia.
Zeepay is active in nine markets and aims to enter a further nine new countries this year. These will include Burkina Faso, Gambia, Tanzania, Ethiopia and Madagascar, though a physical presence will only be needed in countries chosen as hubs. Zeepay has lined up partnerships with Orange, MTN and local players which will enable it to operate.
Source: Africa Report