A financial and capital markets fintech investment group, 42Markets has secured Sh1.3bn ($10mn) growth funding from Convergence Partners, a private equity investor dedicated to the technology sector across sub-Saharan Africa, after it recently closed its Convergence Partners Digital Infrastructure Fund (CPDIF) at Sh40.2bn ($296mn).
“This is a real vote of confidence in the positive impact investment in digital financial infrastructure can have, both in developing and in mature markets,” 42Markets Group CEO Andries Brink says.
Mr Brink notes that the most mature of the Group’s businesses is capital markets services and advisory firm Andile (UK,), that brings deep market and industry expertise to help the Trade and Treasury departments within Banks, leapfrog legacy software to streamline and automate their IT Operations infrastructure. The business currently services Investment Banks and Central Banks, across Africa, the United Kingdom, the European Union, Australia, and India.
With over a decade of experience in the East African market, Andile has established itself as a trusted partner for banks and financial institutions, creating jobs and driving economic growth in the region. The funding will enable Andile to further leverage its expertise and invest in new technologies, positioning the company as a leader in the region’s Capital Markets ecosystem, and contributing to increased financial stability and inclusiveness in East Africa.
Other Group companies include early-stage platform business FXFlow (SA, ), a FX exposure and risk management platform that creates value for importers and exporters in regulated markets, and Mesh (Netherlands) an institution-grade, decentralised, multi-sided Financial Markets platform that bridges the gap between TradFi, (the traditional world of Financial and Capital Markets), AltFi (a range of alternative, traditionally illiquid financial assets and investment instruments) and DeFi (the new world of Distributed Ledger Technology and Tokenomics).
“This is one of our first investments in the digital transformation of financial markets. We see 42Markets as an emerging winner in this space. Their group companies have a long track record of consistent double-digit growth and a quality leadership team with deep expertise and experience in the capital markets,” Brandon Doyle, CEO of Convergence Partners, said.
“This is the connected capital we have been looking for. We are proactively engaging with these investors to explore further opportunities to work together,” Brink says, adding that 14 leading global development finance institutions (DFIs) based in Europe, the US and Africa are the investors in CPDIF.
According to Christian Roelofse, investment officer responsible for the Netherlands DFI says the efforts of Convergence Partners in identifying and supporting African entrepreneurs will pay off in the long run.
“We believe that digitally enabled financial inclusion will be advanced on the continent. Through our partnership with Convergence Partners, we are proud to be associated with innovative companies that are developing relevant solutions for the biggest needs of our time,” says Roelofse.