South African fintech group Adumo, which raised ZAR225 million ($15 million then) last year from International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, has now topped up its coffers with an internal round from existing backers.
The independent payments processor operating across Sub-Saharan Africa said Friday it has raised ZAR190 million ($11 million) to increase its shareholding and control in some of its recent acquisitions.
The firm tapped current shareholders Apis Partners, Crossfin Holdings and IFC’s Fintech division as well as a debt facility provided by Investec.
The funds will be used to increase Paul Kent-led Adumo’s shareholding in GAAP to 80%, which will enhance Adumo’s growth plans. GAAP specialises in the international hospitality industry, providing restaurants, hotels and retail franchises integrated solutions.
Adumo will also increase its shareholding in Switchpay, an alternative payments provider, to 100%. Switchpay, which was incorporated into the Adumo customer facing brand in August 2022, will provide Adumo with a lending technology platform for processing buy-now-pay-later (BNPL) transactions and other consumer credit line options. Humble, a cloud-based Point-Of-Sale (POS) solution has also received additional funding from the capital raise to accelerate its organic growth.
Adumo expects it will hire an additional 100 employees, bringing the total employee count in the group, to over 1000 people. Adumo, previously known as Crossfin Transactional Solutions, had previously attracted Apis Growth Fund I, a private equity fund managed by the UK-based financial services asset manager Apis Partners LLP, to invest growth capital in 2018.