20 March 2023
adumo raises R190 million to consolidate and develop its recent acquisitions
London, 18 November, 2022: adumo, the leading independent payments processor operating across Sub-Saharan Africa, has successfully raised R190 million to increase its shareholding and control in some of its recent acquisitions.
CEO of adumo, Paul Kent commented, “Local consumers are following a global trend of demanding digital and flexible methods of making cashless payments, through alternative methods. Likewise, merchants require financial solutions to grow and streamline their businesses through the use of alternative payment options that are integrated into their businesses”.
“The timing was therefore perfect for adumo to further finance our assets in order to develop and provide our value added financial products to our clients”, added Kent.
The capital raise included an equity raise from its current shareholders, Apis Partners, Crossfin Holdings and IFC’s Fintech division as well as a debt facility provided by Investec.
The funds will be used in increase adumo’s shareholding in GAAP to 80%, which will enhance adumo’s growth and expansion plans. GAAP specialises in the international hospitality industry, providing restaurants, hotels and retail franchises integrated solutions.
CEO Paul Kent notes, “We will leverage an opportunity to add further value added solutions in the form of adumo payment devices into the GAAP client network. GAAP’s current 7500 client base stand to benefit as these devises can be fully integrated and embed payments into their current point of sale software.”
adumo will also increase its shareholding in Switchpay, an alternative payments provider, to 100%. Switchpay, which was incorporated into the adumo customer facing brand in August 2022, will provide adumo with a lending technology (‘Lendtech’) platform for processing Buy-now-pay-later (‘BNPL’) transactions and other consumer credit line options.
Humble, a cloud based Point-Of-Sale (‘POS’) solution has also received additional funding from the capital raise to accelerate its organic growth. Kent noted that, “Humble was recently appointed as a POS platform partner to a major South African bank, providing the bank with a white label Point-of-Sale Software solution.”
Over the past year, adumo has refined a number of payment processing solutions, in the form of devices that can be fully integrated into the merchants’ business, are mobile, can operate off android and are available as different options to small, medium and larger businesses.
adumo is expanding operations into new markets and is experiencing significant growth in the South African Development Community (‘SADC’) region over the past year. The company intends to further grow its market share into this region over the near future as merchants and customers’ a like demand increased flexible and mobile cashless payment options.
Kent anticipates that the growth opportunity will require hiring an additional 100 employees, bringing the total employee compliment of adumo and GAAP to over 1000 people.
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About Apis Partners LLP
The Apis Group (“Apis”) is an ESGI-native global private equity and venture capital asset manager that supports growth-stage financial services and financial infrastructure businesses by providing them with catalytic growth equity capital. Collectively Apis, through its team of approximately 40 professionals with deep industry expertise, manages or advises on total committed capital from investors (including drawn and invested capital) of US$1.2 billion. Including its headquarters in London, Apis has representation in eight countries across Europe, Asia, and Africa.
Apis is highly conscious of the developmental impact that the provision of growth capital for financial services and financial infrastructure businesses in growth markets can achieve, and as such, financial inclusion is a core tenet of Apis’ approach and investment mandate. Apis became a signatory to the United Nations backed Principles for Responsible Investment (UNPRI) upon inception of the firm in 2014.
African Fintech company adumo, is South Africa’s largest independent payments processor and services clients across 13 countries in Africa. Currently, adumo exceeds a processing value of R80 Billion per annum in formal markets across South Africa, Namibia and Botswana. adumo provides small and medium enterprises with a financial services platform that enables an ecosystem of integrated value-added financial and business services, with the aim to let clients get paid, simplify their payments environment, and to grow and optimise their businesses.
GAAP was started as a family run business some 30 years ago. The business specialises in providing products to the hospitality industry, including point-of-sale hardware and software, drive-thru systems for quick-service restaurants, digital menu board solutions, and online ordering solutions including all relevant customer support. The company has grown into the leading African hospitality point-of-sale software and integrations provider. Customers include KFC, McDonalds, Burger King, Nandos, Chicken Licken, Hungry Lion, Wimpy, Krispy Kreme, King Pie, Simbisa Brands and Costa Coffee, which is about to enter the African market.
Switchpay gives customers alternative payment and finance options to empower customers with payment flexibility. The facility provides purpose based lending, layby solutions and subscription agreements, whereby a payment option for a fixed amount over a subscription period is agreed upon.
Crossfin invests in high growth and established cash generative businesses, offering investors a blended exposure to technology investments in Fintech. The Crossin Portfolio is uniquely positioned to unlock real value through the organic and acquisitive growth of our ecosystem and the continual introduction of additional products and services through our various platforms.
About IFC’s Fintech division
IFC’s Fintech investment team focuses on technology-driven innovation in financial infrastructure, products, services, and their distribution.
Apis Partners: Francesca Rossi | Francesca.firstname.lastname@example.org | +44 (0)20 3653 0500