Peach Payments eyes Africa expansion after funding round
Local fintech firm Peach Payments has received funding for an undisclosed amount in the latest round of investment in the business.
The funding round, says Peach Payments, was again led by Umkhathi Wethu Ventures (UW Ventures) in partnership with Allan Gray – with other existing investors participating as well.
Pan-African venture fund Launch Africa Ventures also joined in as an investor in this round of funding, it adds.
Peach Payments provides a payment gateway, allowing businesses to accept payments on Web sites, mobile apps, SMS and e-mail. It gives them access to payment methods, including credit/debit cards, bank transfers, mobile wallets, electronic wallets and mobile operator billing.
Rahul Jain, co-founder of Peach Payments, says with operations in SA, Kenya and Mauritius, the investments are earmarked for growth acceleration outside of SA, as well as scaling up the business’s current products and services, operational and engineering teams.
“This new investment round is a great indicator of the confidence our investors have in our core business model and hypothesis,” states Jain. “Peach set solid growth targets for itself in 2020, and we far outperformed those expectations. COVID and the acceleration of digital commerce provided strong tailwinds for the business − we doubled down during 2020 and invested heavily in identified growth areas to make the most of the opportunities.
“These investments effectively mean we are able to not only meet the demand that the current environment provides but also create enhanced services for our customers – in South Africa and beyond its borders – as well as the technical and staff resources required to meet that demand. It is optimal for us to grow now.”
According to Peach Payments, it saw a rapid increase of 400% in customer acquisition last year and revenue growth of 130%.
Andreas Demleitner, co-founder of Peach Payments, says while the fintech firm’s original vision to bring a “world-class” payments solution to businesses in Africa has not changed, it has expanded to “meet the customer where they do business digitally, be it on an e-commerce site, app, SMS, or mobile phone, and make it easier for them to succeed”.
Demleitner states that growth into Africa is key, and while scaling up current operations in Kenya and Mauritius, the team is investigating opportunities in other East and West African countries.
Harry Apostoleris, co-founder at UW Ventures, adds: “Peach Payments’ growth over the last year reflects the company’s commitment to supporting merchants in building and adapting their businesses, especially during the digital acceleration we have experienced over the last 12 months. We are excited to continue supporting the company’s mission and their ambitions of building an enduring Pan-African enterprise underpinned by world-class technology.”
For Launch Africa Ventures, its investment in Peach Payments will ensure advanced technology feeds the potential for African e-commerce to thrive beyond SA.
“In many ways, this is not just an investment in one company but into the ecosystem that companies like Peach Payments are building. For that reason, we are excited to partner with Peach Payments in their incredible journey,” says director Baljinder Sharma.
While future growth projections are just as encouraging in 2021, Jain indicates that providing support structures that enable customer growth is critical. “Sharing knowledge is as important as sharing tech if digital commerce is to truly become the hero of these extraordinary times.”