Visa is not losing momentum in its investments strategy, participating in a funding round in African payroll and HR solutions company Workpay.
According to a LinkedIn post from Workpay’s founder and CEO, Paul Kimani, the US payments giant has participated in a funding round alongside two other investors.
Joining Visa were Norrsken22, an Africa-focused mobile money platform, and American venture capital firm Plug and Play Tech Center. According to TechCrunch, the Series A funding round totalled $5m.
“Today, we are excited to announce our series A funding round,” Kimani commented on LinkedIn.
“First, I would like to thank our customers who continually inspire and push us to do more and become better. Thank you to the incredible Workpay team. This milestone is a testament to your dedication to the work we do. Jackson Kibigo and I are eternally grateful.
“Thank you to our new partners Norrsken22 (lead), Visa, and Plug and Play Tech Center. To our existing investors taking part in the round -Y Combinator, Saviu Ventures, Axian Group, Verod-Kepple Africa Ventures, and Acadian Ventures – we appreciate your continued support over the years!”
The investment showcases the increasing interest the global finance sector is paying to African businesses, in particular the continent’s emerging fintech and payments systems.
In comparison to the traditional, established markets of Western Europe, North America and Australia, among others, African markets are often more receptive to alternative payment methods (APMs).
Locally developed payments systems have built up a solid foundation in many of Africa’s biggest economies. M-Cash in Uganda and MPesa in Kenya are two of the best examples of this. The popularity of these payment methods can be compared to that of the Pix instant payments platform in Brazil.
Leading international payments firms like Visa are always on the lookout for new opportunities, whether these be investment opportunities or the chance to work with emerging fintech startups.
The fact that both Visa and Plug and Play participated in this funding round is an interesting note, as the duo have a history of working together on similar projects. Earlier this year launched the application process for the second round of the Visa Inclusive Fintech Accelerator, seeking innovative fintech startups.
