Ozow, a fintech business based in South Africa, has raised a US $48 million Series B fundraising round to help it grow its product offering and enter new markets.
Ozow was founded in November 2014 by Thomas Pays, Mitchan Adams, and Lyle Eckstein, who saw a need for an efficient and secure online payment system in the local market and renamed from i-Pay in April 2019 to focus on aiding SMEs with payments.
Using QR codes, point of sale, e-commerce, e-billing, and peer-to-peer payments, the firm provides easy, fast, and secure alternative payment options to millions of retailers and customers. MTN, Vodacom, the Shoprite Group, Takealot, and Uber are among the companies that Ozow works with.
Tencent is leading Ozow’s US $48 million Series B financing, which also includes Endeavor Catalyst and Endeavor Harvest Fund. The current round of funding will go toward Ozow’s attempts to alter the banking sector and expand financial access to the unbanked. It will also help Ozow solidify its position as one of the continent’s major payment providers and grow into new markets.
“It’s an honour to bring on board Tencent, Endeavor Catalyst, and Endeavor Harvest Fund. This is a validation of our role in transforming the banking industry through the development of innovative, convenient, and more inclusive payment solutions for everyone,” said Pays.
Ozow has shown 100% year-over-year growth since its Series A fundraising round in June 2019. It currently handles more than $100 million in monthly transaction volumes over a network of thousands of retailers. The company’s user base continues to expand, with over 120,000 new users joining the platform each month.
The Series B capital round, according to Pays, will support the company’s development objectives and geographical expansion across Africa.
“We’re also heavily focused on expanding our product offering. This will largely be driven through the development of new products, as well as a strong focus on strategic investments that include mergers and acquisitions,” he said.
