DPI and Convergence co-invest in fintech provider Channel VAS
Development Partners International (DPI), a pan-African focused private equity firm, and Convergence Partners have co-invested in Channel VAS, a fintech provider of mobile financial and airtime credit services operating in Africa, Asia and the Middle East.
Channel VAS provides Mobile Financial Services, Big Data Analytics and Airtime Credit Services to mobile operators and financial institutions in more than 30 countries, enabling access to micro and nano loans including cash, handsets, airtime and data.
Since the business began in 2012, it has helped clients serve hundreds of millions of customers in the region.
The company has a track record of delivery to its customers, underpinned by its innovative credit scoring technology, unique data analytics capabilities and proprietary patented credit provisioning platforms.
For 2019, Channel VAS is on target to provide over $1.5bn of credit to hundreds of millions of people globally through its partnerships with MNOs and financial institutions.
The investment reaffirms DPI’s interest in financial services, a fast-growing sector supporting Africa’s booming middle class, and its commitment to Sub-Saharan Africa.
DPI, as an active investor, will also be working closely with senior management, shareholders and the Board regarding the future strategy and growth trajectory of the business.
Eduardo Gutierrez-Garcia, Partner at DPI, said: “Channel VAS’ success so far positions it perfectly to continue to capitalise on Africa’s growing, yet underpenetrated mobile airtime market. Providing services to the underbanked and a rapidly growing young population is an incredibly exciting space to be operating in; and DPI is delighted to become a partner to Channel VAS on its journey.”
“We look forward to working with the management team, who have built a business of significant scale, and that has a track record of delivering high quality financial services to its clients. With a robust pipeline of opportunities and its unmatched credit scoring technology, the business is well positioned to leverage the development of the mobile sector across the region.”
Bassim Haidar, Channel VAS CEO and founder also commented: “Channel VAS is at the cutting edge of fintech, driving mobile finance forward across the region. We are pleased to welcome DPI whose significant experience investing across the continent and developing businesses of scale will help us in our continued mission to drive connectivity across Africa, serving the underbanked communities and driving financial inclusion across the continent.” Source: Africa Global Funds