Fintech Crossfin sold in R 1.5 billion deal


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Crossfin Technology Holdings, a South African fintech investment company, was acquired by a consortium of investors, including African Rainbow Capital (ARC) of Patrice Motsepe, for 1.5 billion rand.

The consortium is led by the Mid-Market Fund I of Ethos and includes the founding management team of Crossfin, the co-investors of EMMF I Ethos Artificial Intelligence Fund I and the empowerment investor ARC. Fairview Partners acted as financial advisers for the transaction, which will see the exit of founding investors Capital Eye Investments and Multiply Group.

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“The transaction is considered a landmark deal in the fintech industry and will allow Crossfin to secure the capital required to continue the next phase of its growth,” Crossfin said in a statement Wednesday.

“The transaction is one of the largest privately-led investments in the FinTech sector to date in South Africa and provides the consortium with exposure to an industry that has and is expected to continue to benefit from, among other things, secular trends in digitization and proliferation. payment technologies.

Crossfin operates primarily in South Africa with a particular focus on payment technologies and smart finance. It is based on three main pillars:

  • Payment technologies: Its main investment here is Adumo, an independent omnichannel payment acquisition company in South Africa that processes approximately 200 million payment transactions per year from 50,000 merchants. Adumo owns the well-known payment brand iKhokha. The segment also includes Crossgate Holdings, which specializes in issuing cards for retailers, banks and non-bank financial institutions.
  • Smart financing: Crossfin is an investor in Retail Capital, which uses transactional data to provide financing to small, medium and micro enterprises, a segment “under-penetrated by mainstream financial institutions and where there is a significant funding gap”. Retail Capital’s business model is anchored around its ‘Low Touch Merchant Cash Advance’ product, “leveraging its proprietary technology platform to analyze merchant transactional payment data to determine reimbursement capabilities and extend funding. Consequently “.
  • Capital risk : Crossfin Ventures (CV) is the venture capital arm of the Crossfin group. “Despite being the smallest of Crossfin’s three current segments (estimated to be less than 5% of value), CV plays a vital role within the Crossfin ecosystem by enabling the company to gain exposure early to emerging trends in the fintech industry. “said Crossfin.

In addition to these three segments, Crossfin is in the process of acquiring Sybrin, a ‘low-code, artificial intelligence-based enterprise software company targeting the financial industry with a focus on automation and use of AI and machine learning to achieve efficiencies for its customers ”.

The new investors will provide growth capital to enable Crossfin to invest organically and seek new opportunities in South Africa and the rest of Africa.

© 2021 NewsCentral Media

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