South African fintech startup Entersekt has raised a “multi-million dollar” funding round to fund its international expansion as well as research and development.
Founded in Stellenbosch, Entersekt offers authentication systems for online and mobile banking services, with its flagship product Transakt enabling a one-touch user experience. Its patented security products already protect close to 100 million transactions monthly, with the company having several large banking clients.
The funding round, which Entersekt says is a multi-million dollar transaction, comes from Rand Merchant Investment (RMI) Holdings, through its fintech innovation hub AlphaCode, and Nedbank Private Equity (NPE), through its private equity investment vehicle BoE Private Equity Investments.
“We are immensely honoured that investors of such a high calibre have endorsed our long-term vision in this way,” said Schalk Nolte, Entersekt chief executive officer (CEO). “We look forward to working together at a board level to unlock the significant potential we see in the global market.”
He said Entersekt could now its organic growth and rapidly establish a presence in new territories.
“We have a solid foothold in Africa, Europe and the United States, but our technology can provide as much value to enterprises in other regions. Enterprise-grade security solutions that streamline consumer mobile experiences, meet compliance obligations, and provide a launchpad for innovation have wide and growing applicability,” Nolte said.
Dominique Collett, RMI senior investment executive and head of AlphaCode, said Entersekt was a high growth business that was ready to scale and led by a strong entrepreneurial management team.
“As RMI has experience of scaling companies globally and as providers of growth capital, we believe that this deal will add value to our portfolio of blue chip investments. It is AlphaCode’s second investment after Merchant Capital, which provides SMEs with working capital finance,” she said.
Marthin Greyling, a principal in the Nedbank Private Equity team, said Entersekt’s proven success in deploying its unique product offering at leading financial institutions and its strategic positioning made it an appealing investment.
“We look forward to partnering with AlphaCode and the existing shareholders to support the company’s global growth aspirations,” he said.