- Leading Nigerian financial services company has invested in biometric identity and payments fintech business, Paycode, to drive its financial inclusion agenda
- The purpose of the raised capital is to execute pipeline deals and drive business expansion across Africa.
Lagos, Nigeria, 2 November 2021:Investment One Financial Services Limited (Investment One), one of Nigeria’s leading financial services providers, through its Venture Capital subsidiary, Investment One Vencap Limited, announced today that it has taken a stake in Paycode, a rapidly growing fintech business focused on financial inclusion across Africa and the frontier markets.
South African-based Paycode is a provider of technology solutions that use biometric digital identity to guarantee proof of life and enable low-cost, last mile delivery of basic financial services. Paycode addresses three critical problems for the unbanked and underserved by providing low-cost solutions to those without formal identification in areas with little or no mobile or internet connectivity.
Paycode enables access to basic financial services including cash pay-outs, mobile money, remittances, insurance, microloans, airtime, electricity and social grants by providing a platform that combines biometric digital identity and payments in one convenient platform.
Paycode CEO, Ralph Pecker commented, “We see Investment One as so much more than just an equity partner to Paycode. Investment One is a significant and innovative player in the financial services sector of Nigeria, a key growth market for us. We believe that having them onboard will greatly accelerate our expansion objectives in Nigeria, and that we in turn can provide an excellent return on their investment.”
Investment One was particularly attracted by the technological USPs of Paycode, a valuation that focused on current revenues and users while reasonably discounting cashflows (in an environment where fintech valuations have noticeably sky-rocketed during 2021) and the scope for growth in Nigeria through projects already won. Investment One analysed Paycode’s future growth trajectory in Nigeria alone to draw conclusions about its relative value. Currently, most of Paycode’s active users are in Ghana, Zambia and Mozambique but the pipeline in larger countries, such as Nigeria and the DRC, is a key growth-driver.
“Our investment in Paycode represents both our drive to achieve excellent returns for our clients, but also our commitment to bringing financial services to excluded sectors in Nigeria. Paycode’s unique approach to solving the most complex challenges of the financially excluded fits perfectly with our own innovative DNA” said Investment One Group Managing Director, Nicholas Nyamali.
With over 6 million card users registered, a partnership with Mastercard and a strong pipeline of fee-driven grant and social programmes under its belt, Paycode plans a Series A capital raise in the first Quarter of 2022.
About Investment One
Investment One Financial Services (Investment One) is a leading player in the Nigerian financial services industry with distinctive offerings in private banking & trust, asset management, real estate, private equity/venture capital, investment banking and securities brokerage.
Investment One is endowed with a team of investment professionals poised to provide clients with premium services founded on in-depth market insight, innovation and service excellence.
Currently operating in Nigeria, Investment One is on the path of expanding internationally with the aim of serving clients beyond their national regions. Visit www.investment-one.com. Follow us on Instagram: @investment_one Facebook: @InvestmentOne
Paycode is an award-winning fintech company specialising in technology that guarantees proof of life and enables low-cost last mile delivery of financial services. Paycode already operates in several countries across Africa, including Botswana, Ghana, Guinea, Mozambique, Namibia, Nigeria, Uganda and Zambia. They are executing their plans to expand globally and achieve a target of serving over 50 million people by 2025. Visit https://paycode.com. Follow us on Twitter: @getpaycode.
Investment One: Tomiwa Owodunni, Tomiwa.Owodunni@investment-one.com
Paycode: Michelle Blumenau, Turquoise PR, firstname.lastname@example.org +27 83 273 9891