Nigerian fintech startup TeamApt has completed a major round of financing that has seen it bring on board one of the world’s largest fintech specialists – QED Investors.
Launched in 2015, TeamApt was formed to solve inefficiencies in Nigeria’s growing digital financial services market, and has a variety of products. The startup counts 100 per cent of the country’s commercial banks amongst its customers and in 2019 secured a switching licence from the Central Bank of Nigeria (CBN) as well as a US$5.5 million Series A funding round.
The startup raised a multi-million US dollar Series B funding round last year, and has now banked another major round led by QED, a premier VC that has invested in 27 unicorns over more than 180 portfolio companies across 14 countries. TeamApt is its first investment in Africa. Existing investors from the Series B round – Novastar Ventures, Lightrock and BII – also participated in this round.
TeamApt operates Nigeria’s largest business payments and banking platform, with more than 400,000 businesses onboarded and processing US$100 billion annualised run-rate transaction value. Its all-in-one business solution aims to digitise Africa’s economy and is laying the foundation that will provide Nigeria’s 41 million SMBs with digital payments acceptance channels, access to working capital and business expansion loans, and business management tools such as expense management, accounting and book-keeping solutions to manage their operations.
“With this financing round, TeamApt is widening our credit offerings,” said TeamApt CEO Tosin Eniolorunda.
“QED’s investment proves TeamApt’s opportunity for exponential growth as a world-class financial institution at the forefront of Africa’s economic revolution. As core fintech operators, QED is bringing the fintech expertise we need to scale in Nigeria and as we plan to expand our offering across Africa. With QED’s operator expertise and TeamApt’s excellent management team, TeamApt will continue digitising Africa’s economy, enabling growth, inclusion and access to financial services.”
QED Investors is a global leading venture capital firm based in Alexandria, Virginia, United States (US). Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in disruptive financial services companies worldwide. In September 2021, QED announced it had closed a substantially oversubscribed US$1.05 billion fund, including US$550 million in QED Fund VII for early-stage investments and US$500 million in a new Growth Fund.
The firm first announced it was entering Africa in February 2022, hiring Gbenga Ajayi and Chidinma Iwueke to lead its investments on the continent.
“I am proud to bring Africa to QED and QED to Africa,” said QED Investors partner and head of Africa Gbenga Ajayi. “I could not think of a better way to enter the continent than with our investment in TeamApt. Tosin and his team have steadily built an impressive payment and distribution network across Nigeria over the past five years. Their strong and positive unit economics, coupled with a deep customer focus, will enable them to continue to build out an even more expansive network.”