The investment, secured from a consortium of investors including the International Finance Corporation (IFC), ILX, and the British International Investment (BII), aims to enhance the reliability, speed, and affordability of money transfers in Africa.

The funding will be instrumental in expanding TerraPay’s operations to new global markets and money transfer operators, thereby increasing transaction volume and driving down costs.

The company plans to leverage the capital to strengthen its infrastructure, expand its network, and invest in cutting-edge technology solutions to address real-world payment challenges.

“This significant investment is a testament to TerraPay’s commitment to transforming the African payments landscape,” said Ambar Sur, Founder and CEO of TerraPay.

“Our longstanding partnership with IFC has been instrumental in our growth, and we are excited to deepen this collaboration to drive financial inclusion and accessibility across the continent.”

In addition to expanding its operations, TerraPay will partner with Enza, a venture capitalist, to accelerate financial inclusion.

This collaboration is expected to bring numerous businesses into the formal financial ecosystem for the first time.

The high cost of remittances in sub-Saharan Africa has been a persistent challenge and TerraPay aims to make money transfers more affordable and accessible for millions of people across the continent.

The funding, facilitated through a securitization partnership with African Frontier Capital, will be used to provide consumer loans for solar and energy-efficient appliances.

This move is expected to bring reliable and renewable energy to an estimated 6 million people over the next three years.

d.light CFO Ron Pfende acknowledged the economic challenges faced by many consumers, saying: “The global economic climate has undoubtedly impacted people’s livelihoods.”

“To address this, we’ve tailored our product offerings to meet individual needs, allowing customers to purchase products individually through our PayGo financing option,” he added.

The company’s strategy of unbundling solar packages into single products is designed to make solar energy more accessible to low-income households.

By scaling up its PayGo consumer finance program, d.light aims to increase the availability of solar-powered products in communities with limited access to electricity.

The fresh capital, led by Argentem Creek Partners and with participation from existing investors, will fuel Dopay’s expansion in its home market, Egypt, and support the launch of new financial services.

The company also plans to extend its multi-bank, multi-country platform to other emerging markets.

Founded in 2014 by Frans van Eerse and Roel Van Eersel, Dopay addresses the critical issue of cash dependency among workers in developing economies.

The platform enables employers to make digital cash payments directly to employees, contributing to the Egyptian Central Bank’s goal of promoting financial inclusion and digitizing payments.

In 2021, Dopay obtained a banking agent license, allowing it to launch a virtual banking platform that facilitates real-time payments and account opening for businesses and their employees. This innovative solution aligns with the Central Bank of Egypt’s regulatory framework.

Dopay’s CEO, Frans van Eerse, expressed enthusiasm about the new funding, stating that it will enable the company to enhance its platform, collaborate with partner banks, and develop a self-financing lending model.

This approach will leverage deposited funds to create a sustainable financial ecosystem and offer new lending products to customers.

Maarten Terlouw, Co-Chief Investment Officer at Argentem Creek Partners, emphasized the potential of a payroll-centric approach to integrating unbanked populations into the formal financial system.

The firm believes this model can foster long-term customer relationships and create opportunities for cross-selling financial products.

This loan is part of a larger $295 million syndicate led by FMO, the Dutch development bank.

“Access Bank’s strong market presence and commitment to SMEs makes them a valuable partner in reaching businesses that need financing,” said Kitanha Toure, Swedfund’s Regional Director for West Africa.

Roosevelt Ogbonna, MD/CEO of Access Bank Plc, highlighted the loan’s significance at a signing ceremony in Hague, Netherlands.

“This facility strengthens our capacity while bolstering Africa’s trade potential,” he said. “We aim to leverage these funds to stimulate growth across various sectors, create jobs, and expand financial inclusion.”

This marks the third such collaboration between FMO and Access Bank, reflecting a shared goal of boosting Nigeria’s economy and job creation.

In 2018, Access Bank secured $10 million as part of a $100 million loan arranged by a consortium of European development finance institutions.

SMEs, estimated at nearly 40 million, are the backbone of the Nigerian economy.

These informal businesses account for roughly 90% of jobs and contribute over 45% to the country’s GDP. Microbusinesses make up a significant portion (nearly 99%) of this network.

The investment will fuel TurnStay’s expansion efforts across Africa and solidify its presence in the local market.

TurnStay offers a payment processing solution specifically designed for the African travel and tourism industry.

Their technology aims to address the high costs traditionally associated with processing payments for hotels and travel companies.

“We’re thrilled by the confidence these investors have placed in our business model,” said Alon Stern, co-founder of TurnStay.

Stern, who previously co-founded consumer finance company Slide Financial, explained that TurnStay “creates a localized payment experience, allowing customers to pay in their home currency using familiar methods.”

He added that TurnStay’s solution has demonstrably reduced processing costs for clients by up to 70%, while also minimizing failed transactions.

TurnStay was founded in 2021 by Stern and James Hedley, co-founder of ticketing platform Quicket.

They identified a critical challenge in the African travel sector: the high fees associated with traditional payment processing for travel businesses.

TurnStay claims to significantly reduce these costs through innovative technology and API integration.

This allows travel companies to attract more direct bookings, bypassing the hefty commissions charged by online travel agencies.

This translates to a direct boost in profitability for travel and tourism businesses throughout the continent.

The African travel and tourism industry is a significant market, projected to reach a revenue of $24.42 billion by 2024 and is expected to continue growing steadily in the coming years.

TurnStay’s expansion plans position them to capitalize on this growth by offering a solution that benefits both travel businesses and international tourists.

This expansion aims to improve the livelihoods of smallholder farmers in the country.

The funding round was led by investment firms CrossBoundary and Redshaw Advisors, alongside existing investors including the Steyn Group.

“This funding is crucial for scaling up our operations at Mount Kenya,” said Rory Buckworth, co-CEO of Bio-Logical. “It also allows us to replicate this model for future expansion, with plans to establish three additional sites across Kenya within the next 18 months.”

This investment comes months after Bio-Logical secured $1 million in seed funding to establish its first facility.

The company’s long-term goals include supporting one million smallholder farmers and sequestering one million tons of carbon dioxide annually by 2030.

Bio-Logical’s technology transforms agricultural waste into biochar, a charcoal-like substance that captures carbon and improves soil health.

This process not only benefits the environment but also empowers farmers by providing them with affordable, climate-resilient fertilizer.

“Smallholder farmers are often hit hardest by climate change, despite contributing very little to the problem,” said Philip Hunter, co-CEO of Bio-Logical.