Interswitch, a leading African payments and digital infrastructure company, has secured a $110 million investment from LeapFrog Investments and Tana Africa Capital. The funding aims to bolster the company’s efforts to expand its digital payment services across the continent.
Although Interswitch did not confirm the investment amount, a company spokesperson declined to share further details, stating, “The exact terms of the transaction haven’t been disclosed. We can’t comment on that for now.” However, CEO Mitchell Elegbe expressed excitement about the new partnership, noting, “We are thrilled to welcome LeapFrog and Tana as we continue to advance the future of the African payments landscape.
”This marks Interswitch’s first publicly reported funding round in nearly three years. In 2019, Visa acquired a 20% stake in the company for $200 million, valuing Interswitch at $1 billion. The fintech giant is a key player in Nigeria’s financial ecosystem, powering online banking rails, point-of-sale terminals, and consumer payment platforms such as Quickteller. Its Verve debit card scheme has issued over 35 million active cards, making it Africa’s largest domestic debit card network.
Previous IPO Plans
Interswitch first announced plans to go public in 2016, with intentions of a dual listing on the London and Nigerian stock exchanges. Reports resurfaced in 2019 regarding its IPO plans, but the company seemed to shift focus following Visa’s investment.
While an IPO remains off the table for now, the latest funding round provides an alternative route for shareholder liquidity. Alongside injecting new capital, LeapFrog and Tana acquired shares from existing stakeholders, including Ignite Holdco Limited, a consortium of Helios Investment Partners and TA Associates.
Strategic Growth Plans
With the new investment, LeapFrog and Tana aim to collaborate with Interswitch’s management team to expand the company’s pan-African footprint. The strategy includes acquiring new customers and developing products to enhance financial inclusion across the continent.
“Interswitch has been a pioneer in the African payments ecosystem, disrupting the cash economy and driving digital payments for two decades,” said Karima Ola, LeapFrog Investments’ partner and head of Africa financial services. “This investment underscores Interswitch’s formidable talent and its positioning to seize opportunities in Africa’s evolving digital payments landscape.
”This funding aligns with Interswitch’s long-term vision to scale its operations and continue shaping Africa’s digital payment ecosystem.
