Adumo, a South African fintech startup, has raised US$15 million.
The funds was raised from IFC, a member of the World Bank Group, and the IFC Financial Institutions Growth Fund.
The fund will help underserved small and medium-sized enterprises gain access to electronic payment solutions.
Adumo is South Africa’s largest independent payments processor, supplying major multinational and independent retailers, as well as entrepreneurs and informal traders, with a variety of smart payment solutions.
Sureswipe, iKhokha, Humble, Innervation Pan African Payment Solutions, and Innervation Rewards are among the company’s subsidiaries.
IFC and the IFC Financial Institutions Growth Fund, controlled by IFC’s Asset Management Firm, have invested US$15 million in preferred shares to support the company’s growth.
“With interest in cashless payment systems at an all-time high, the pandemic and its effect on customers and companies are changing the face of the payments industry.
The funds raised by our new equity partners will be used to help Adumo carry out new payment technologies and purpose-based lending programs to help customers and retailers navigate an unpredictable 2021, according to Paul Kent, CEO of Adumo.
“By investing in Adumo, we will be assisting small businesses in gaining access to the digital economy, which is more critical than ever.
Sérgio Pimenta, IFC vice president for the Middle East and Africa, said that digital payments are often the first step for a small business to develop a credit history, which opens the door to other financial services such as financing to expand the business.
IFC’s investments will help Adumo make digital payments systems more affordable and available to smaller businesses in Africa, many of which still depend on cash transactions.