Interswitch launches e-payment fund

Interswitch, a leading Pan-African integrated payment, processing and transaction switching company, has announced the launch of a new US$10 million ‘e-Payment Growth Fund’.

The fund is intended to serve as a catalyst for funding innovation and disruptive business concepts within the payment industry across Africa.

A statement issued and signed by Ms Victoria Geoghegan, a member of the communication team of lnterswitch, said the company was seeking to collaborate with African entrepreneurs and start-up businesses developing innovative products and services that empower Africans to participate in the emerging payment ecosystems currently transforming business on the continent.

It said the fund has made its first investment in ‘Africa Courier Express’ (ACE), formerly A-Post, a Nigeria-based and Africa focused technology driven ecommerce logistics and warehousing firm.

It said the ACE has developed and rolled out a new cutting-edge technology to track, deliver and collect payments seamlessly for and on-behalf of its clients.

"The company will receive an initial investment of US$850,000 from the Interswitch e-Payment Growth Fund to enable management to execute its West Africa expansion plans with the potential to access additional funding," it added.

The statement said the investment by Interswitch represented the start of a new partnership model to deepen the ecommerce space across Africa.

The ACE was launched in November 2013 by Tunde Kehinde and Ercin Eksin, two experienced professionals with strong market experience in running successful retail and logistics businesses in emerging markets.

It said the company currently provided reliable third-party logistics, tracking and pay-on-delivery (cash and electronic) services for retail businesses in Nigeria, and since it was launched, ACE has established physical presence in 5 cities across Nigeria.

The statement said the investment by the Interswitch fund would enable ACE to grow the West Africa’s retail market by allowing retailers to focus on their core business of purchasing and managing inventory.

Mitchell Elegbe, the Group Managing Director, Interswitch, said:“ Interswitch is committed to encouraging innovative ideas and developing start-ups across Africa."

He said the company has created the US$10 million e-payment growth fund to do invest start-up, and it is with great excitement that they are announcing their first investment.

Mr Tunde Kehinde, a Co-Founder of ACE, said "We are delighted and very proud to be selected as the first investment from the Interswitch ePayment Growth Fund."

He said the new capital provided through the new partnership with Interswitch, and which is part of a larger US$2.6 million funding, would enable them to accelerate their expansion through Nigeria and beyond into West Africa.