Nigerian fintech enabler Appzone bags $10 mn in Series A round

 Nigerian fintech enabler Appzone bags $10 mn in Series A round

Lagos-based fintech software venture Appzone said Monday it has secured $10 million in a Series A round of funding to build an ecosystem for Africa’s banking and payments sectors.

The investment round was led by mid-market PE firm CardinalStone Capital. Other investors that took part were V8 Capital Partners, Lateral Capital Investment Partners, Constant Capital and Itanna Capital Ventures.

CardinalStone had previously disclosed its investment in Appzone but had not shared the quantum.

Appzone offers a suite of services to banks under its flagship product BankOne. These include cloud-based software to run core operations like accounting, deposits, loans, and customer interactions in a fully digital and automated way. It also offers an interbank blockchain network for processing payments and settlement.

Besides, Appzone offers a point-of-sales (PoS) technology that allows agents of banks to deliver financial services to underbanked individuals in locations where there are no bank branches.

In addition, AppZone allows digitisation and automation of card operations across banks. The card management platform, Prime, manages aspects such as personalisation, transaction processing, settlement, reconciliation, and issue resolution. The company claims it is responsible for issuing more than 80% of all payment cards provided to account holders by banks annually.

Another key offering of the firm is its Recova platform, which automates the entire lending value chain from origination to disbursement and payment collection.

The company was co-founded by Emeka Emetarom, Obi Emetarom (CEO) and Wale Onawunmi around 13 years ago. It has previously raised two rounds of capital.

In 2014, Johannesburg-listed BCX had said it picked up a 30% stake in AppZone. This stake was worth around $2 million. In 2018, Appzone raised fresh capital through convertible securities, partly to buy back the stake from BCX, which was acquired by Telkom and thereby delisted.

Another African fintech enabler that raised capital recently is South Africa’s Stitch Money Corporation. The startup builds application programming interface focussed on financial technology. It came out of the stealth mode and announced its seed funding round of $4 million in February.

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Vivek Sinha

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