MOBILE money service provider, Paga Nigeria, has announced securing new investments from Adlevo Capital, Omidyar Network, Acumen Fund, Capricorn Investment Group and current investors Goodwell West Africa Microfinance Development Company to boost money transfer nationwide.
Paga, which claims to use a multi-stakeholder approach in its dealings, also disclosed that since launching its service in February, it had processed over 276,000 transactions, worth over N2.6 billion. The mobile money firm said that it crossed the 100,000 users mark in June and had over 125,000 users.
Paga, which enables any person with a mobile phone or Internet access to send cash to anyone in Nigeria, buy or send airtime credit, pay bills, pay both online and physical retail stores (without cash notes or a debit card), and perform a variety of other transactions, said that it services were available on all mobile networks and were delivered to customers in collaboration with strong local banks (including microfinance institutions), retailers and various other private and public sector organisations.
Commenting on the purpose of the investment, Paga’s founder/Chief Executive Officer, Mr. Tayo Oviosu, said: “The business opportunity for Paga is huge and it follows that the capital requirement to achieve our mission is also significant. A key requirement for success in our industry is having investors who share our vision and have the financial fortitude for such an undertaking. To date, individual investors and Goodwell have funded us.
“We are humbled by the interest we continue to receive from both local and international institutional investors. This investment will enable Paga to scale our operations across Nigeria and allow us to build upon our front-runner position. We have carefully chosen our investors for their track record and the immense value they will bring towards accomplishing our mission.”
Speaking on the opportunity presented by Paga, Managing Partner at Adlevo Capital, Mr. Yemi Lalude said: “Nigeria is Africa’s largest consumer market and a key requirement for commerce to grow is efficient payment systems across all spectrums of society. What we like about Paga is their holistic approach to servicing merchants by providing a secure and simple solution for both banked and un-banked users to pay for goods and services. We are impressed with the calibre and accomplishments of the Paga team and proud to have led this financing round.”
According to the Director of investments at Omidyar Network, Arjuna Costa, said: “Omidyar Network is very pleased to invest in Paga. The company’s innovative mobile solutions for commerce combined with its potential to enable financial inclusion broadly could be key factors in driving large scale social impact. By replacing cash as the primary method of payment, Paga enables real-time transactions that are more accessible, transparent and inclusive. We believe Paga has the potential to rapidly scale and improve the lives of millions across Nigeria and the region.”
Speaking further on Paga’s social impact, Founder and CEO of Acumen Fund, Jacqueline Novogratz, said: “We think Paga’s innovative offerings will go a long way in bringing new economic opportunities to people that have been underserved by traditional financial services.
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