Adumo raises $15m from IFC

South Africa: South African fintech startup Adumo has raised ZAR225 million (US$15 million) from IFC, a member of the World Bank Group, and the IFC Financial Institutions Growth Fund to expand access to electronic payment solutions, especially for underserved small and medium-sized businesses.

Adumo is South Africa’s largest independent payments processor, offering a range of smart payment solutions to large multinational and independent retailers as well as entrepreneurs and informal traders. Its group companies include Sureswipe, iKhokha, Humble, Innervation Pan African Payment Solutions, and Innervation Rewards.

The investment by IFC and the IFC Financial Institutions Growth Fund, a fund managed by IFC’s Asset Management Company, consists of US$15 million in preferred shares to fund the growth of the company.

“The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an all-time high. The funds we have raised from our new equity partners will help us roll out new payment innovations and purpose-based lending services to support consumers and retailers as they navigate an uncertain 2021,” said Paul Kent, chief executive officer (CEO) at Adumo.