Tana Africa Capital (“Tana”) and LeapFrog Investments (“LeapFrog”) have announced a strategic investment in Interswitch, one of Africa’s leading technology-driven companies focused on payment digitization.
The funding will help support the company’s efforts to improve the payment ecosystem across Africa. Existing shareholders contributed a portion of the investment, with Ignite Holdco Limited, made up of Helios Investment Partners and TA Associates, remaining the company’s largest shareholder after the transaction.
LeapFrog and Tana will join existing investors in driving Interswitch’s pan-African strategy as it seeks to reach new clients throughout the continent, develop new products and services, and support its financial inclusion agenda.
Interswitch, founded in 2002 by entrepreneur Mitchell Elegbe, revolutionized Nigeria’s traditional cash-based payment system by delivering electronic payment processing and switching services. Interswitch now has two main brands: Verve, a successful multichannel consumer and business payments platform, and Quickteller, a popular multichannel consumer and business payments platform.
With 948 full-time workers across Africa, Interswitch is devoted to being a responsible business, focused on employee wellness and talent development, and is led by a highly experienced management team.
Interswitch also has an inclusive culture and is gender-balanced throughout the company, with women accounting for roughly 40% of employees in Africa and 38% of the management team.
Karima Ola, Partner, Head of Africa Financial Services, LeapFrog Investments said: “Interswitch, a pioneer in the African payments ecosystem, has been disrupting the cash economy, driving digital payments, and promoting equitable financial inclusion in Nigeria for two decades. This investment by LeapFrog affirms the formidable talent at Interswitch, and how well-placed it is to seize the significant opportunity in Africa’s evolving digital payments landscape. LeapFrog is proud to be partnering with Interswitch to further enhance their innovative, digital capabilities to deliver sustainable scale, whilst positively impacting the lives of millions of people and businesses across the region.”
Mark Tindall, Managing Director, and CEO, Tana Africa commented: “Interswitch has developed a strong position at the nexus of Nigeria’s payments ecosystem, underpinned by an offering which is primed for continued growth. The business’ evolution is a testament to management’s track record and tenacity. Alongside LeapFrog, we look forward to supporting Interswitch’s next chapter through continued product innovation and growth across the African continent.”
Mitchell Elegbe, Founder and Group Chief Executive of Interswitch, stated: “We are excited to welcome LeapFrog and Tana on board, as we continue our work to advance the future of the African payments landscape. The evolution of fintech in Nigeria and the broader sub-Saharan region has been driven by the need to solve challenges and barriers within the traditional financial system. Interswitch was born from the need to develop solutions that match the unique needs of local customers and merchants.”