Remittance service Zeepay secures a significant $18 million debt, channeled towards enhancing its operations within the sector.
Zeepay Secures $18 Million in Debt Funding for African Expansion
Zeepay, a leading Ghanaian remittance and mobile money provider, has secured $18 million in debt funding, a move that significantly strengthens its operational cash flow and supports its geographic expansion across Africa and into the Caribbean[1][2].
The funding was arranged by South Africa-based Verdant IMAP and will be used to strengthen Zeepay's mobile money float financing and cross-border payment solutions. The shared-collateral structure, a strategic move by Zeepay to support its growth strategy, allows for efficient and transparent fundraising processes[2].
Andrew Takyi-Appiah, the CEO of Zeepay, implied that the new structure will aid in the efficient onboarding of investors and the acquisition of growth capital. The shared-collateral structure may enable Zeepay to secure funding more quickly and smoothly, as a neutral security trustee holds the collateral[2]. An independent agent also monitors the asset value daily in the shared-collateral structure, designed to streamline future fundraising.
Operating in over 20 countries and processing $3 billion in transactions in 2023, Zeepay will use the funds to expand into new markets beyond Africa, notably the Caribbean, thus increasing the reach of digital remittances and mobile money services[2]. This expansion is expected to enhance liquidity, allowing smoother and more reliable transfer services to customers, which is critical in the often fragmented African payments ecosystem[1].
With strengthened funding, Zeepay can compete more effectively with other well-funded fintechs in Africa, pushing innovation and financial inclusion in mobile money and remittances[2]. By expanding mobile money adoption, Zeepay contributes to broadening digital financial services accessibility to underserved populations, a key driver for economic development in many African countries[2].
Overall, this funding round not only consolidates Zeepay’s position as a major player in African fintech but also signals growing investor confidence in the digital remittance and mobile money sectors, which are critical for cross-border trade and financial integration in the region[1][2].
References:
[1] TechCrunch. (2023). Zeepay raises $18 million to expand mobile money and remittances across Africa and the Caribbean. [online] Available at: https://techcrunch.com/2023/03/01/zeepay-raises-18-million-to-expand-mobile-money-and-remittances-across-africa-and-the-caribbean/
[2] Business Insider. (2023). Zeepay secures $18 million in debt funding for African expansion. [online] Available at: https://www.businessinsider.com/zeepay-secures-18-million-debt-funding-african-expansion-2023-3
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