Oikocredit invests US$ 5m in Ghanaian digital remittances company Zeepay

 Amersfoort, the Netherlands – Social impact investor Oikocredit has co-led a US$ 17 million Series A.5 investment round into Ghanaian financial technology company (fintech) Zeepay Ghana Ltd, a digital remittances infrastructure provider, to improve financial inclusion for migrant workers in Africa and the Caribbean.

Oikocredit’s equity investment totals US$ 5 million. The round also included participation from pan-African investment firms Africa50, Injaro Ghana Venture Capital Fund (IGVCF) and Verdant Capital Hybrid Fund, with follow-on financing from Investisseurs & Partenaires (I&P), through its I&P Afrique Entrepreneurs II (IPAE 2) investment vehicle.

Zeepay will use the funds to expand its geographical footprint and deepen its remittances and mobile services offerings for international money transfer organisations and their customers, through the extended use of digital wallets.

Zeepay operates in more than 20 countries. Founded in 2014, the payment infrastructure company specialises in facilitating the instant settlement of remittances into mobile money wallets in Africa and the Caribbean on behalf of major global money transfer companies. Last year, it settled more than 10 million remittance transactions worth in excess of US$ 3 billion in value.

One in nine people worldwide – about 800 million – live in households that receive international remittances, according to the UN. Remittances to low- and middle-income countries were estimated to have reached $669 billion in 2023, up from US$ 645 billion in 2022, according to the World Bank’s December 2023 Migration and Development Brief. The amount is more than three times official development assistance and exceeds foreign direct investment to those countries.

Sending money via digital channels provides millions of underserved migrants and their families access to financial services.

Andrew Takyi-Appiah, the Founder & CEO of Zeepay Ghana Ltd, commented: “We would like to thank all our stakeholders, including Oikocredit and our other shareholders, our customers, and our staff for all the support in bringing this round to a close. The raise will greatly assist us to complete our current on-going expansion drive into the rest of Africa. Our short- to medium-term plan is to expand our mobile money reach into a minimum of 10 countries within the next two years, leveraging remittances in partnership with MoneyGram and we are delighted to see this vision come through.”

Samuel Ndirangu, Equity Officer at Oikocredit, said, “Oikocredit is delighted to partner with Zeepay as we grow our global portfolio of impactful fintechs. Remittances are essential to financial inclusion for many households in Zeepay’s countries of operation, and its digital wallets can help overcome challenges around transparency, convenience, speed and safety for both senders and receivers of funds. We are pleased to partner with a fast-growing African business led by a capable team and look forward to supporting its growth.”

Raza Hasnani, Managing Director and Head of infrastructure Investments at Africa50, said, “Africa50 is delighted to be partnering with Zeepay to support its leading role in the digital payments infrastructure space on the African continent and beyond. Foreign currency inflows from remittances are the lifeline for many African economies with sizable diaspora populations, especially in the current economic environment. Zeepay provides a local, affordable, secure, and convenient money transfer solution for the industrious African diaspora to support their loved ones.”

Sebastien Boyé, Co-CEO of I&P, said, “I&P’s follow-on investment in Zeepay demonstrates our conviction in the success and prospects of the business. We are proud to have partnered with a highly capable promoter and management team in delivering impressive financial and social returns over the past two years with our initial investment. We are excited to be joined by new like-minded investors and remain fully committed to supporting the Zeepay to attain its goal of becoming a leading pan-African mobile financial services business impacting the lives of millions of underserved users across Africa and the Caribbean.”

Jerry Parkes, Managing Director of Injaro Investment Advisors Ltd, said, “The Injaro team is honoured to partner with the Zeepay team, which is led by Andrew Takyi-Appiah, a dynamic and visionary young Ghanaian entrepreneur. We look forward to working together to achieve the ambitious goal of creating a successful Ghanaian multinational and a market leader in the fintech space. It is especially gratifying to finance Zeepay with Ghanaian capital as this ensures that profits from this investment flow back into the local economy to trigger a virtuous cycle of economic development. We believe that this investment represents an important first step in building linkages between Ghana’s pension funds and exceptional local businesses which are important drivers of Ghana’s economic growth.”

Kwabena Appenteng, Director at Verdant Capital, said, “Zeepay offers investors like Verdant an attractive combination of hard currency earnings through its remittance-to-the-wallet business and growth opportunities across the continent. Testament to the strength of the management team at Zeepay: the business reached profitability earlier in its lifecycle than other fintechs and has maintained strong profitability while growing and diversifying its footprint and revenue base.

About Oikocredit 

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.  

Oikocredit's loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.  

Oikocredit finances more than 500 partners, with total outstanding capital of € 1,084.7 million (at December 2023). For more information, visit www.oikocredit.coop.

About Zeepay Ghana Ltd

Founded in 2014, Zeepay Ghana Ltd is a leading provider of digital remittance termination and ancillary mobile financial services in Africa and the Caribbean. The company has a footprint in over 20 countries worldwide and has partnerships with major remittance players such as MoneyGram, Remitly, Ria, Instant Money and Rightcheck. For more information, visit: www.myzeepay.com.

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Note for editors

For more information or to request an interview, please contact please contact Viviana Cordero, Communications Business Partner, Oikocredit International; telephone: +31 33 422 4040, email: vcordero@oikocredit.org.

To reach Zeepay Ghana Ltd, please contact Ofoe Agbettor, Brand Associate, Zeepay; telephone: +233 20 276 0708, email: ofoe@myzeepay.com.