Paga Mobile Money Gets Fresh Fund

Nigeria’s pioneer mobile firm, Paga, has secured fresh funds from four investment companies, Adlevo Capital, Omidyar Network, Acumen Fund, and Capricorn Investment Group.

The management of mobile money firm in statement at the weekend said it got the fresh fund from the four investment companies to boost its capacity and to expand its mobile money technology in different parts of the country.

The value of the investment was, however, not disclosed.

In the statement, Chief Executive Officer, Paga, Mr. Tayo Oviosu, said the business opportunity for Paga is huge and it follows that the capital requirement to achieve its 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,” he stated.

He explained that the mobile money company played a significant role in the country’s cashless milieu by enabling users send cash, pay bills and perform variety of other transactions with their mobile phones.

Oviosu noted that his company was majorly sustained by funds from individual investors before the recent interest of the four investment companies.

He said: “To date, we have been funded by individual investors. We are humbled by the interest we continue to receive from both local and international institutional investors. This investment will enable Paga to operate successfully  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.”

Oviosu said Paga had processed over 276,000 transactions worth more than N2.6billion since it began operations, adding that the mobile money company now had over 125,000 users.

On the his company’s investment in Paga, the Managing Partner, 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.”

sOmidyar Network Director of Investment, Mr. Arjuna Costa, said the company was very pleased to invest in Paga. “We believe Paga has the potential to rapidly scale and improve the lives of millions across Nigeria and the region,” he said.

Commenting on Paga’s social impact, the Founder and Chief Executive Officer, Acumen Fund, Mr. Jacqueline Novogratz, stated that Paga’s innovative offerings would bring new economic opportunities to people that had been underserved by traditional financial services.

With more than half of Nigerians living on less than $1 a day, the Director, Acumen Fund, West Africa Office, Mr. Godfrey Mwindaare, said, “The Paga team is already working to deliver on its plans for low cost savings products, micro-insurance, and other financial services through its agent network and in partnership with strong local banks. We look forward to working with Paga and the investor consortium that Paga has attracted to help the company achieve its goal of bringing financial access to 40 million Nigerians by 2015.”

The Managing Director, Capricorn Investment Group, Mr. Dipender Saluja, said “Our belief in the power of innovation to catalyse economic and social advancement drew us to Paga. Paga has tremendous potential and we look forward to working with the team to build a great company.”