Paga, Nigeria’s leading mobile payment company announced it raising $13 million in Series B round of funding led by Adlevo Capital along with Omidyar Network, Goodwell West Africa, Acumen Fund and Capricorn Investment Group.
Founded in 2009, Paga has become inseparable with payments in Nigeria by serving as solutions to many challenges faced by many on the lookout for safe and convenient ways to make payments. The company offers services that include sending money to any phone number for the beneficiary to redeem at an Paga agent across Nigeria or at any ATM via a cardless withdrawal, depositing money to bank accounts in Nigeria, pay their bills or top-up mobile phone airtime. With the range of services and products for SMEs, Paga has become very popular with merchants looking to sell their goods and services online and collect debit card or mobile money payments securely.
Paga has partnered with more than 8,850 agents across Nigeria to offer its services. Apart from agents, its services can be availed through its website, a mobile application and its online payment gateway that s free for any business to combine and collect payments through Paga accounts or any debit card. Till date, the company claims to have more than 3,400 SME clients and 3.4 million users of Paga for payments.
With the fresh funds, Paga plans to improve and strengthen its agent network. It also plans to innovate on the payment offerings for small and medium sized business and other consumers. Tayo Oviosu, founder and CEO of Paga excited about the funding said, “Through our agent network today, we already offer more physical service points than all the bank branches in Nigeria put together, so we are actively working on partnerships with banks to offer our agent network for use by their customers.Effectively, Paga agents will act as human ATMs and bring significant convenience to customers of the banks who need to deposit or withdraw cash from their bank accounts without traveling far or waiting in long lines. This will support the banks in achieving their critical goal of truly reaching the mass market.”
Folabi Esan, managing partner at Adlevo Capital said, ” We are very excited about Paga. When Adlevo first invested in Paga in 2012 the company had processed only about 270,000 transactions totaling just over $15 million in value. The company has experienced an impressive compounded annual growth rate of about 150% since Adlevo invested – today, having processed over 17 million transactions worth over a billion dollars. Paga’s sustained leading position in a competitive market is a testament to the strength of their team – and I think there’s even more to come as they unlock other areas of the business. I’m confident in Paga’s ability to drive growth of their sector in the coming years and continue to have a significant positive impact on the Nigerian economy.”