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Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa

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Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa

Transaction further expands Verdant Capital‘s experience in advising on transactions shaping Africa‘s FinTech sector

JOHANNESBURG, South Africa, October 25, 2021 / APO Group / –

MFS Africa acquires Baxi to expand its network in Nigeria, Africa’s largest economy and perhaps its most dynamic fintech market. Nigeria is also the largest remittance market in Africa, accounting for a third of intra-African remittance flows, and home to the largest number of SMEs. Verdant Capital (https://Verdant-Cap.com) considers the two activities to be very complementary: Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria via its omnichannel distribution network; MFS Africa simplifies cross-border payments by integrating payments through a hub. The transaction further expands Verdant Capital’s experience in advising on transactions shaping the FinTech sector in Africa.

Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa

The sale of Baxi is Verdant Capital’s fifth successful fintech transaction of the year, after advising Retail Capital, a leading technology SME-financier in South Africa on a $ 10 million capital increase; Zeepay, a leading Pan-African digital money transfer and mobile payment company on its $ 8 million Series A and acquisition of Mangwee in Zambia; and Tugende, one of the leading backers of tech SMEs in East Africa on its $ 10 million Series A. The transactions cover West, East and South Africa. Partly due to its successful experience in transactions in the FinTech sector, as well as its leading private equity franchise, Verdant Capital was named Best Independent Advisor of the Year, Pan-African, by Africa Global Funds. , for the second consecutive year in October 2021.

Founded in 2014 by Degbola Abudu and Folu Majekodunmi, Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks. Baxi offers a full range of services up to the last mile, including cash-in / out, account opening, money transfer and bill payment. Through its network of over 90,000 agents, Baxi processed over $ 1 billion in transactions in the first nine months of 2021. After the transaction closes, MFS Africa plans to make Baxi a key hub for its digital payment network, enabling customers to make regional and global payments to and from Nigeria. MFS Africa also intends to extend Baxi’s proposal to offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets in more than 35 African countries.

Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa

Strong agent networks are the crucial interface for fintechs to reach Nigeria’s roughly 100 million financially unserved or underserved people. Supporting and supporting SMEs is crucial for the Nigerian economy, as they contribute 50% of gross domestic product and provide 76% of jobs (source: Federal Ministry of Information and Culture). With its presence in all 36 Nigerian states, Baxi fills a critical gap by providing informal SMEs and other unbanked Nigerians with access to financial services. Verdant Capital is proud to support the leading companies that support SMEs across the continent.

The transaction is subject to the approval of the Central Bank of Nigeria.

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Verdant Capital advises Baxi, a leading super-agent in Nigeria, on its sale to MFS Africa

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