42Markets Group Bags Sh1.4B Capital Injection for Tech Investments

To invest in the fintech sector in Kenya and other parts of Africa, financial and capital markets fintech investment organization 42Markets secured Sh1.4 billion ($10 million) from investors.

Convergence Partners, a private equity investor focused on the sub-Saharan African technology market, provided the funding.

The firm will invest in new technologies and support financial stability and inclusion in East Africa through  services and advisory service firm Andile (UK).

Bank trade and treasury departments can optimize and automate their IT operations infrastructure with assistance from Andile, which provides market and industry experience.

Currently, it provides services to investment banks and central banks in Africa, the UK, the EU, Australia, and India.

“This is a real vote of confidence in the positive impact investment in digital financial infrastructure can have, both in developing and in mature markets,” 42Markets Group CEO Andries Brink said.

The early-stage platform firm FXFlow (SA), a platform for managing FX exposure and risk in regulated markets, is one of the other Group enterprises.

Others include Mesh (Netherlands, Mesh.trade), a multi-sided financial markets platform that connects DeFi (the new world of distributed ledger technology and tokenomics) and AltFi (a range of alternative, historically illiquid financial assets and investment instruments) with TradFi (the traditional world of finance and capital markets).

“This is one of our first investments in the digital transformation of financial markets. We see 42Markets as an emerging winner in this space,” Convergence Partners CEO Brandon Doyle said.

“Their group companies have a long track record of consistent double-digit growth and a quality leadership team with deep expertise and experience in the capital markets.”

According to Brink, CPDIF is backed by fourteen eminent international development financing institutions (DFIs) with headquarters in Europe, the US, and Africa.

“This is the connected capital we have been looking for. We are proactively engaging with these investors to explore further opportunities to work together.”

“Through our partnership with Convergence Partners, we are proud to be associated with innovative companies that are developing relevant solutions for the biggest needs of our time,” Netherlands DFI Investment Officer Christian Roelofse stated.