Interswitch, a Nigeria-based African payments company, has entered into a $110 million joint investment deal between LeapFrog Investments and Tana Africa Capital, according to a statement from the investment companies.
The investment will be used to scale up growth on the African continent, the companies said. With the new investment, Interswitch, which crossed the unicorn threshold in 2019 after receiving $200 million for a 20% stake from Visa, has further increased its valuation although it has not confirmed how much it has obtained from companies by TechCrunch.
“Exact terms of the transaction were not disclosed. We cannot comment on this at this time,” a company spokesperson told TechCrunch when asked about the investment and Interswitch’s new valuation.
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However, Interswitch Group and LeapFrog Investments expressed optimism that the investment will help the payments business expand its services.
“This investment from LeapFrog confirms Interswitch’s tremendous talent, and how well-positioned it is to seize significant opportunity in Africa’s evolving digital payments landscape. LeapFrog is proud to partner with Interswitch to further enhance its innovative digital capabilities to deliver sustainable scale, while positively impacting the lives of millions of people and businesses across the region,” Karima Ola, Partner, head of financial services in Africa, LeapFrog Investments mentioned.
“We are delighted to welcome LeapFrog and Tana on board, as we continue our work to advance the future of the payments landscape in Africa. The evolution of fintech in Nigeria and across the sub-Saharan region has been driven by the need to address the challenges and barriers that exist within the traditional financial system. Interswitch was born out of the need to develop solutions that meet the unique needs of local customers and merchants,” said Mitchell Elegbe, Founder and Managing Director of Interswitch Group.
However, the 20-year-old company has remained mum on its planned IPO debut, which has been on its to-do list since 2016, but that hasn’t limited its growth. Interswitch enables seamless payment in Africa through online payments, POS terminals, Quickteller and Verve, which is 100% accepted for payment in Nigeria and 185 other countries around the world, the company said.
With 948 full-time employees across Africa, the fintech powers much of the rails of Nigeria’s online banking system and is well known for its point-of-sale terminals, online consumer payment platforms, Quickteller and Verve, the nation’s largest debit card system. in Africa which has issued more than 35 million active cards since its launch.