Adlevo Capital has led a deal to back Nigeria-based mobile banking company, Pagatech.
Adlevo partnered with Omidyar Network, Acumen Fund and Capricorn Investment Group on the transaction. Existing investor, Goodwell West Africa Microfinance Development Company also backed the deal. The financial details of the transaction have not been disclosed.
The round of funding will finance Pagatech’s plans to grow its footprint across Nigeria. The company is expected to leverage the Nigeria’s improved mobile phone usage penetration , with more than two thirds of the country’s population now estimated to have access to mobile phone usage.
“Pagatech has a holistic approach to servicing merchants, by providing a secure and simple solution for both banked and un-banked users,” said Yemi Lalude, managing partner at Adlevo Capital. “We are impressed with the calibre and accomplishments of the Pagatech team and look forward to working closely with them.”
Founded in 2009, Pagatech provides financial services through a secure payment platform that operates over mobile phone and internet devices. Users can transfer funds via short messaging systems, with the option of sending and receiving money at retail agents across Nigeria. The Pagatech tools can additionally be integrated into online checkout platforms.
Pagatech is Adlevo’s second transaction from its maiden tech fund, Adlevo Capital Africa, which closed at the end of 2011. Adlevo sealed its first deal last year, partnering with Helios Investment Partners to acquire about 67% of Nigeria-based payment processing company InterSwitch, for an estimated $110 million.