The Pan-African fintech company-MFS Africa recently announced its second close of Series B funding round. Led by LUN Partners Group, a Shanghai-based global investment management group, the round includes existing shareholder Goodwell Investments joining LUN Partners Group in investing additional capital into MFS Africa.
MFS Africa is a pan-African fintech company with the largest digital payments network on the continent. It connects mobile money systems to each other and to money transfer organizations. This includes banks and other financial institutions; enabling money remittances to and from mobile money accounts.
Dare Okoudjou is the founder and CEO of MFS Africa. Prior to founding MFS Africa, he was part of the MTN Group. There, he developed and rolled out their mobile payment strategy in 21 countries across Africa and the Middle East. While working on both sides of the remittance experience, he understood the frustrations in the process. As a result, he saw the urgency to meet the needs of under-banked clients through mobile money.
“I started MFS Africa because I realized that there was a big problem that needed to be solved within mobile money ‒ interoperability. We decided to solve this problem by connecting mobile wallets in Africa to our MFS Hub – allowing service providers to facilitate transactions across networks, borders, and currencies through a single API that ensures compliance with all necessary regulations,’’ Dare said in an interview with IT News Africa.
Since its creation, the fintech company has enabled Africans to send money to mobile wallets across the continent. Reports indicate that MFS Africa covers 170 million mobile money recipients across all major networks.
About the recent Series B funding round
According to recent data from FSD Africa, it’s expected that by 2022, the fintech sector’s contribution to Sub-Saharan Africa’s economic output will increase. There will be at least a USD $40 billion to USD $150 billion increase.
“Closing the Series B round has validated our achievements to date and allowed us to focus on the next big steps in our journey – bringing our platform and services fully to scale,” the CEO of MFS Africa added.
This Series funding enables investors to support entrepreneurs with the proper funds to realize their dreams. The recent series B funding is yet another important opportunity for new companies to gain crucial financial support.
“In addition to driving access to basic services that provide real value to users, such as payments, remittances, savings, and credit; growth in fintech is also creating an opportunity for employment and businesses across the value chain,” Dare further explained.
According to Dare Okoudjou, MFS has big and unrelenting plans for Africa.
“Today, MFS Africa connects over 85% of the African mobile money market and while we are already executing on our plans to continue to grow on the continent and increase our coverage, we also have our eye on expansion into other regions. Our most well-established use case is the cross-border person-to-person payment – which is already disrupting the inefficient, fragmented, and expensive intra-African remittance market. The financing will help us develop additional use cases to bring value to our partners, and will enable us to extend our geographic footprint and our service offering,” the CEO again noted.
The Pan-African fintech company has great plans install for Africa indeed. With the growth of mobile money transfer, we look forward to seeing an increase in the digitization of financial services.