Baobab Payments GmbH, operating under the brand Peach Payments, has successfully concluded a substantial €29 million / US$30 million funding round, with Apis Growth Fund II at the helm. This pivotal investment, first unveiled in April, is spearheaded by Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, a distinguished UK-based asset management firm.
Peach Payments stands as a formidable enterprise-grade digital payment service provider, facilitating online payments across Africa for enterprises of all dimensions. This development comes following Apis Partners’ April 2023 announcement of its intention to invest in Peach Payments, marking a strategic infusion of funds consisting of a blend of primary and secondary investments.
Rahul Jain, CEO, and co-founder of Peach Payments, outlined the overarching objective of this funding endeavor, stating, “This capital infusion is earmarked for accelerating our growth trajectory, which includes the development of innovative products and expansion into untapped African markets. We are committed to reinforcing our presence in our current strongholds – South Africa, Kenya, and Mauritius – with a focus on bolstering market share, expanding our workforce, and introducing cutting-edge offerings. All these strategic actions converge on our primary goal of aiding our merchant partners in scaling their businesses.”
A distinguishing feature of the platform is its seamless expansion capability for businesses. Companies utilising Peach Payments in one African nation can effortlessly expand into new territories within the continent without the cumbersome task of identifying new payment partners. With Africa’s 54 countries offering as many as 12 distinct payment methods, including credit cards, debit cards, instant EFTs, multiple buy-now-pay-later options, and electronic vouchers, Peach Payments is dedicated to extending this functionality across the African landscape.
Jain shed light on the challenges businesses face in Africa, stating, “For enterprises targeting consumers across the continent, the fragmentation in payment methods and stores of value presents a formidable challenge in accepting digital payments. Peach Payments has effectively abstracted this complexity for merchants in the countries where we operate. Our vision is to extend this simplification to more African nations, and we are actively exploring opportunities.”
Udayan Goyal, Co-Founder and Managing Partner at Apis Partners, expressed his enthusiasm for the partnership, emphasising, “We eagerly anticipate harnessing Apis Partners’ capital, expertise, and global network to bolster Peach Payments’ infrastructure, product portfolio, and human resources. This collaboration aims to solidify the recent achievements of Peach Payments and propel it into the next phase of expansion.”
Consumers are poised to benefit from this development with a streamlined online payment experience with robust security measures and access to cross-border payment solutions. This will enable consumers to make international purchases while utilising their preferred local payment methods. Simultaneously, merchants will seize fresh opportunities to expand their businesses globally, tapping into a broader customer base.
Matteo Stefanel, Co-Founder and Managing Partner at Apis Partners, underscored the significance of this investment, saying, “We continue to recognise substantial opportunities in African payments, driven by enduring trends unrelated to annual business cycles. These include the ongoing shift from cash to digital payments and the transition from in-store to online transactions in key markets. We have been impressed by the vision and execution of Peach Payments’ management team in capitalising on these trends. We eagerly anticipate collaborating with Peach Payments to extend its footprint into new markets with innovative solutions for merchants.”
The infusion of new funding augments Peach Payments’ operational agility, enabling the company to pursue multiple priorities simultaneously and thus accelerate its execution speed. Legal aspects of the funding round were meticulously managed by Webber Wentzel on behalf of Apis Partners and V14.de representing Peach Payments. This deal secured approval from South Africa’s Competition Commission in May, with all requisite formalities completed in August, and funds successfully transferred earlier this month.
