The International Finance Corporation (IFC) and other investors have jointly acquired TerraPay for $9.6 million. Other investors in the acquisition include Prime Ventures and Partech Africa.
This is not the first time that IFC is investing in fintech startups in Africa. It equally has stakes in Interswitch, Fawry, Lulalend, Net 1 and Zoona. It does this to streamline money transfer processes, as well as increase financial inclusion in emerging markets.
IFC invests between $3 million and $20 million for minority equity or a minimum of $10 million in debt funding of growth-stage startups. The fintechs are tech-enabled businesses that are commercially viable.
See also: IHS Towers Set to Undertake Africa’s Biggest IPO on NYSE
TerraPay is a mobile payment fintech that operates in Africa, Asia, and Europe. In 2015, Ambar Sur founded the company which now has more than 25 global licenses to operate in 60 countries. It partners with governments and financial institutions, including Western Union, Visa, Xpress Money, MoneyTrans, Paga, Ria, Instant Cash amongst others. Its central transfer protocol reduces the cost of remittances and other financial services.
TerraPay was incorporated in the Netherlands and was incubated by Comviva, an India-based mobile solutions provider. Following the acquisition, IFC, Prime Ventures, as well as Partech own controlling stake while TerraPay’s management owes a significant stake.
The CEO, Ambar Sur, considers the acquisition as validation of the fintech and an opportunity to reach more underserved countries in the coming years.
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