Lagos, July 2, 2012 – Paga,
Nigeria’s leading money transfer service launched in February 2011, today
announced it has secured new investments from Adlevo Capital, Omidyar Network,
Acumen Fund, Capricorn Investment Group, and current investors Goodwell West
Africa Microfinance Development Company.
Paga’s mission is to deliver innovative and universal access to financial services for all Nigerians. The company plays a critical role in enabling a cashless Nigeria and delivering access to finance to the over 80% of Nigerians that are un-banked or under-banked. The company uses a multi-stakeholder approach. Paga is available on all mobile networks and is delivered to customers in collaboration with strong local banks (including microfinance institutions), retailers and various other private and public sector organisations.
Paga enables any person with a
mobile phone or Internet access to send cash to anyone in Nigeria, buy or send
airtime credit, pay bills, pay both online and physical retail stores (without
cash notes or a debit card), and perform a variety of other transactions.
Individuals can also perform these transactions in their communities by
visiting any agent in Paga’s growing network, comprising of more than 850
agents currently located in 19 cities.
Commenting on the purpose of the
investment, Paga’s founder & CEO, Tayo Oviosu, said “The business
opportunity for Paga is huge, and it follows that the capital requirement to
achieve our 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. To date, we have been funded by individual
investors and Goodwell. We are humbled by the interest we continue to receive from
both local and international institutional investors. This investment will
enable Paga to scale our operations 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.”
Speaking on the opportunity
presented by Paga, Yemi Lalude, managing partner at Adlevo Capital, 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.”
Arjuna Costa, director of
investments at Omidyar Network, added, “Omidyar Network is very pleased to
invest in Paga. The company's innovative mobile solutions for commerce combined
with its potential to enable financial inclusion broadly could be key factors
in driving large scale social impact. By replacing cash as the primary method
of payment, Paga enables real-time transactions that are more accessible,
transparent and inclusive. We believe Paga has the potential to rapidly scale
and improve the lives of millions across Nigeria and the region.”
Speaking further on Paga’s social
impact, Jacqueline Novogratz, founder and CEO of Acumen Fund, said “We think
Paga’s innovative offerings will go a long way in bringing new economic
opportunities to people that have been underserved by traditional financial
services.” With more than half of Nigerians living on less than $1 a day, it is
critical to find ways to deliver low cost financial services to the un-banked
and under-banked. Godfrey Mwindaare, the director of Acumen Fund’s West Africa
office, added “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.”
Speaking on Paga’s success to
date, early investor, ‘Tokunboh Ishmael, managing director of Alitheia Capital,
co-manager of Goodwell West Africa Microfinance Development Company said
"As the first institutional investor in Paga, Goodwell has always believed
in the opportunity of a platform like Paga to foster financial inclusion in
Nigeria. From the onset, Paga has continually exceeded expectations and this
strengthens our confidence in Paga’s ability to achieve its goals. Paga’s
success thus far has led to the quality of investors that are now joining us on
this journey for the long-term.”
Elaborating on the investment,
Dipender Saluja, managing director of Capricorn Investment Group, said “Our
belief in the power of innovation to catalyze economic and social advancement
drew us to Paga. Paga's platform offers consumers a secure way to process
financial transactions. Millions of Nigerian consumers who rely on cash can now
use their mobile devices, the internet, or Paga agents to make payments and
purchase goods. Paga has tremendous potential and we look forward to working
with the team to build a great company.”
Speaking further on innovation,
Oviosu said “Innovation is at the core of Paga. Paga is a home-grown solution
that overcomes a core challenge in Nigeria – how to transfer money or pay for
anything without physically carrying cash. Imagine a day you walk into your
local provision store, to buy provisions for the weekend and you don’t need to
carry cash, or even your wallet! Simply, all you have is money in Paga. The
storeowner processes your transaction via Paga and now has his money in the
bank. The opportunities abound and this is why investors have put their weight
behind our team to help us achieve our mission.”
Since launching to the general
public, Paga has processed over 276,000 transactions worth more than N2.6
billion. On June 4 2012, Paga achieved a major milestone and crossed 100,000
unique users. Today Paga has over 125,000 users.
Customers can use Paga directly
from their mobile phones or Internet-enabled devices by visiting www.mypaga.com
or a Paga agent. Recipients of money sent can simply go to any Paga agent to
collect the funds and do not need to be Paga customers to do so.
Paga was advised on this
investment round by international law firm Norton Rose LLP (Partner - Bayo
Odubeko) and the investors were advised by Bowman Gilfillan (Partner - Lele
Modise).
About Paga
Paga was founded in April 2009
with a mission to deliver innovative and universal access to financial services
in Africa. Paga received its provisional licence to operate from the Central
Bank of Nigeria in November 2010 and full license November 2011. Paga is underpinned by a secure payments
platform that is built with the flexibility to operate in any environment and
on the most basic mobile phone and Internet enabled device. To maximise the
network effects critical for the long-term success, Paga has taken a
multi-stakeholder approach and works with strong local banks and microfinance
institutions and on all mobile networks. Customers can use Paga via multiple
channels – SMS, Online, Java application on a device, and our agent network.
The company has gone to great lengths to balance simplicity and security of its
platform. To learn more visit www.mypaga.com Contact: Ayisola Iroche -
media@pagatech.com - 0700-000-7242
About Acumen Fund
Acumen Fund is working to create
a world beyond poverty by investing in social enterprises, emerging leaders and
breakthrough ideas. We invest patient capital in business models that deliver
critical goods and services to the world’s poor, improving the lives of
millions. Since 2001, Acumen Fund has globally invested more than $75 million
in 69 companies. We are also working to build a global community of emerging
leaders that believe in creating a more inclusive world through the tools of
both business and philanthropy. Please visit www.acumenfund.org for more
information.
About Adlevo Capital
Adlevo Capital is the first
private equity firm focused on investments into technology-enabled companies
across multiple African countries. The firm was founded by seasoned
professionals to capitalize on growing investment opportunities in the
technology-enabled service segments of multiple industry sectors in sub-Saharan
Africa. The Adlevo Capital team’s operating experience, technology expertise
and extensive network of relationships enable it to add significant value to
portfolio companies from its local offices in Lagos and Johannesburg. Its
portfolio includes InterSwitch Limited, the leading provider of electronic
payment processing services in West Africa and Paga, Nigeria’s leading money
transfer service. For more information, visit www.adlevocapital.com.
About Capricorn Investment Group
Established in 2001, Capricorn
Investment Group is a privately-owned, independent investment manager with
offices in Palo Alto and New York. Capricorn currently manages approximately
$4.5 billion in total capital across a highly diversified, global blend of
investment funds and opportunistic direct investment strategies. Its vision is
to provide consistently strong investment performance and disciplined risk
management, true independence, and a principled investment approach.
About Goodwell West Africa
Goodwell West Africa is a
microfinance investment vehicle co-managed by investment manager Goodwell
Investments from the Netherlands and Alitheia Capital in Nigeria. The fund’s
mission is to improve access to affordable financial services for people at the
‘Base of the Pyramid’. Therefore Goodwell West Africa invests in
entrepreneurial institutions aimed at banking the unbanked, seeking to achieve
a substantial social return as well as an attractive financial result. For more
information, please visit – www.goodwell.nl and www.thealitheia.com
About Omidyar Network
Omidyar Network is a
philanthropic investment firm dedicated to harnessing the power of markets to
create opportunity for people to improve their lives. Established in 2004 by
eBay founder Pierre Omidyar and his wife Pam, the organization invests in and
helps scale innovative organizations to catalyze economic and social change. To
date, Omidyar Network has committed more than $500 million to for-profit
companies and nonprofit organizations that foster economic advancement and
encourage individual participation across multiple initiatives, including
consumer internet and mobile, entrepreneurship, financial inclusion, government
transparency, and property rights. To learn more visit www.omidyar.com
Useful links:
Paga. Your cash, anywhere, anytime
https://www.mypaga.com/paga-web/start.paga
FT: Nigeria Telecoms: Mobiles may be future of banking
http://www.pagatech.com/news/ft-nigeria-telecoms-mobiles-may-be-future-banking
Paga to commence mobile money operation in Nigeria by 2011
http://mobilemoneyafrica.com/paga-to-commence-mobile-money-operation-in-nigeria-by-2011/
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Paga receives N315m grant
http://dailytimes.com.ng/article/paga-receives-n315m-grant
Useful links:
Paga. Your cash, anywhere, anytime
https://www.mypaga.com/paga-web/start.paga
FT: Nigeria Telecoms: Mobiles may be future of banking
http://www.pagatech.com/news/ft-nigeria-telecoms-mobiles-may-be-future-banking
Paga to commence mobile money operation in Nigeria by 2011
http://mobilemoneyafrica.com/paga-to-commence-mobile-money-operation-in-nigeria-by-2011/
ServicesShare|Share on printShare on emailShare on twitterShare on facebook
http://dailytimes.com.ng/article/paga-receives-n315m-grant
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