South African payments company Ozow, which focuses on payment solutions that help to drive financial inclusion, has raised $48-million in a Series B funding round led by China’s Tencent.
The investment round also includes Endeavor Catalyst and Endeavor Harvest Fund. Notably, Endeavor Catalyst’s investment committee approval was chaired by Reid Hoffman. a partner of Greylock and co-founder and former executive chairman of LinkedIn.
Ozow says the latest fundraising will support its efforts to transform the banking ecosystem and create greater financial access for the underbanked. It will also assist Ozow in cementing its position as one of the leading payment providers on the continent.
Ozow provides merchants and consumers with fast and secure alternative payment solutions, from QR codes and point of sale to ecommerce, e-billing, and peer-to-peer payments. The company works with major retailers, including the MTN, Vodacom, the Shoprite Group, Takealot, and Uber.
“It’s an honour to bring on board Tencent, Endeavor Catalyst and Endeavor Harvest Fund,” says Thomas Pays, CEO and co-founder of Ozow. “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.”
Since Ozow’s series A funding round in June 2019, the company has seen 100% year-on-year growth of its business. It processes over $100-million in transaction volumes monthly, across a network of thousands of merchants. More than 120,000 users join the platform each month.
Pays says that the Series B funding round will support the company’s growth plans and regional expansion in 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.
“Our mission has always been to develop innovative payment solutions that enable millions of businesses and consumers to participate in our growing digital economy.”