Remittance provider MFS Africa secured $4.5 million in its latest funding round, an investment it will use to grow in existing markets, develop merchant services and provide facilities to ease trade between Asia and Africa.
MFS Africa CEO Dare Okoudjou told Mobile World Live the investment would allow it to accelerate growth, while: “connecting African consumers to the global digital economy, and exposing African merchants to global consumer audiences.”
The funding round was led by China-based VC company LUN Partners. As part of the deal, the companies will collaborate to open digital trade channels between businesses in China – and other Asian countries – and the remittance company’s network in Africa.
In a statement, the companies cited fintech and e-commerce companies as potential beneficiaries.
LUN Partners chairman Peilung Li said: “China is home to some of the most exciting and fastest growing technology firms in the world, and Africa is the birthplace of mobile money. At the same time, the continent remains fragmented with no single network able to serve the region.”
“MFS Africa has spent years connecting these mobile money services to create one pan-African network which can substantially boost cross border trade and open up new opportunities for Chinese as well as global firms,” he added.
MFS Africa forged partnerships with over 100 companies working in the African financial services sector including Orange, MTN, Ecobank, Airtel and Vodafone, and is able to directly connect with 170 million mobile wallets.
Other companies taking part in the funding round include Dutch investment fund Goodwell Investments and a number of angel investors.