Convergence Partners Acquires Stake in Nigerian Fintech Firm, Ve
Convergence Partners Acquires Stake in Nigerian Fintech Firm, Ve
… First West African investment for company’s pan-African ICT infrastructure fund…
11 August 2015, Johannesburg: Convergence Partners today announced an investment of $20m by the Convergence Partners Communications Infrastructure Fund (CPCIF) for a strategic, minority stake in Venture Garden Nigeria (VGN), a diversified fintech company with significant operations in Nigeria. CPCIF, the largest fund dedicated solely to ICT infrastructure in Africa, is currently deploying capital to build a portfolio of investments across the ICT spectrum, improving access to technology as well as broadband services.
VGN is a holding company for a group of financial technology entities that provide innovative, data-driven, end-to-end technology platforms addressing reconciliation and payment processing inefficiencies across multiple industry verticals. Current solutions are tailored for financial services, education, aviation, power, downstream oil and gas and cyber-security. The injection of substantial new equity capital into VGN will enable the company to accelerate its growth plans domestically in Nigeria, and across the West African region.
“Innovative financial technology is a key component of the African development story, as it enhances efficiency and governance, and enables service provision to the broader population. With its high calibre and energised management team, and leading position in the fast growing markets in which the company operates, VGN is a very exciting investment opportunity for us,” says Brandon Doyle, CEO of Convergence Partners.
Bunmi Akinyemiju, CEO of VGN comments, “We believe that the fintech space is a catalyst for technology-driven transformation in Africa and are pleased to have a specialist investor like Convergence Partners on board who shares our vision of technology as a key enabler and driver of economic development, for example in the education sector. The culture of Convergence Partners is one that aligns well with ours and we are confident that the professionalism, commitment to excellence and fearless approach to disruptive innovation that we strive for, is what they look for in the teams they back. With the support of Convergence Partners, we believe we can accelerate the execution of our strategy, and achieve a wider customer reach.’’
Convergence Partners recently announced the final close of CPCIF (with capital of over $200 million) and the opening of an office in Lagos, Nigeria’s commercial hub. Convergence Partners’ local presence will enhance the management and monitoring of portfolio companies in this key region as well as Convergence Partners’ on the ground transaction capability.
About Convergence Partners
Convergence Partners, founded in 2006, is an investment management firm focused on the telecommunications, media and technology sector in Africa. Convergence Partners has a proven track record of developing new investment opportunities, as well as adding value to investments across the life cycle of ICT assets. As impact investors, Convergence Partners is dedicated to catalysing investment capital to accelerate communications access and ICT infrastructure development on the continent, focusing on initiatives that increase availability of communications, broadband services and new technology offerings to the people of Africa. Convergence Partners’ founders are seasoned pan-African private equity players, experienced in developing investments that deliver enhanced returns while underpinning continental development.
Convergence Partners has played a leading role in landmark African ICT infrastructure investments, such as:
Find out more at: http://www.convergencepartners.com
About Venture Garden Nigeria
Founded in 2011, Venture Garden Nigeria is an investment holding company that incubates, invests in and operates financial technology companies; implementing proven ICT solutions that transform companies and governmental organisations in emerging markets into high performing establishments. With five offices across Nigeria and over 200 employees, the Group consists of several companies focused on developing technology solutions for institutions in the education, power, aviation, downstream oil and gas, financial services and cyber-security sectors. With a sector focused approach, VGN’s portfolio companies develop automated data collection, data management, automated billing processing, e-invoicing, payment processing, automated direct debit processing and revenue management solutions for emerging markets, particularly in Africa.
Find out more at: http://www.venturegardengroup.com