Investment One to Drive Market Expansion with New Solution
Investment One Financial Services, through its venture capital subsidiary, Investment One Vencap Limited, has acquired a stake in Paycode, a rapidly growing fintech firm focused on financial inclusion in Africa and border markets to stimulate business expansion in the African market.
Paycode, based in South Africa, is a provider of technology solutions that use biometric digital identity to ensure proof of life and enable the delivery of basic, low cost, last mile financial services.
In a statement, he said the new solution would solve three critical issues for the unbanked and underserved by providing low-cost solutions to those without formal identification in areas with little or no connectivity. mobile or Internet.
“However, allows access to basic financial services, including cash payments, mobile money, remittances, insurance, microcredit, airtime, electricity and social grants by providing a platform that combines biometric digital identity and payments into one convenient platform, âthe statement said. .
Commenting on this new development, Paycode Managing Director Ralph Pecker said: âWe see Investment One as much more than just a financial partner of Paycode. They are a significant and innovative player in Nigeria’s financial services sector, a key growth market for the organization. We believe that having them on board will significantly accelerate our expansion goals in Nigeria and that we, in turn, can provide a great return on their investment. “
Pecker said Investment One was particularly drawn to Paycode’s tech USPs, a valuation that focused on current revenue and users while reasonably discounting cash flow (in an environment where fintech valuations have skyrocketed significantly. in 2021) and the possibilities of growth in Nigeria through projects already won.
âInvestment One analyzed Paycode’s future growth trajectory in Nigeria only to draw conclusions about its relative value. Currently, most of Paycode’s active users are in Ghana, Zambia, and Mozambique, but the pipeline to larger countries, such as Nigeria and DRC, is a key growth driver.
âOur investment in Paycode represents both the drive to achieve excellent returns for our customers, but also our commitment to bring financial services to excluded sectors in Nigeria. Paycode’s unique approach to solving the most complex challenges of financially excluded people fits perfectly with our own innovative DNA, âsaid Nicholas Nyamali, Managing Director of Investment One Group.
“With over six million registered card users, a partnership with Mastercard, and a strong pipeline of grants and paid social programs under its belt, Paycode expects a Series A capital increase in the first quarter of 2022.”