Mobile Financial Solutions (MFS) Africa, a digital payments network based in South Africa, recently announced it will acquire Baxi, a platform facilitating online payments for small and medium-sized enterprises (SMEs) in underserved communities in Nigeria. Verdant Capital, a corporate finance firm that specializes in mergers and acquisitions, is advising Baxi on the transaction. The pricing of the sale has not been disclosed, and it remains subject to approval by the Central Bank of Nigeria.
Founded in 2014, Baxi offers products including BaxiPos, which enables SMEs to accept digital payments, and “a cash-in/cash-out offering as well as… account opening, money transfer [and] bill payment” services. During 2020, Baxi processed transactions worth approximately USD 1 billion.
MFS Africa works with a range of financial services providers to connect 320 million digital wallets, enabling “accessible, affordable, inclusive alternatives for remittance/money transfers, microlending, microinsurance, micro-savings, and payments.” As of 2021, MFS Africa operates in approximately 35 African countries. This has excluded Nigeria until now due to the relatively low penetration of digital wallets in the country.
Verdant, which has offices in the Democratic Republic of Congo, Ghana, Mauritius and South Africa, provides capital raising and financial advisory services as well as assisting in mergers and acquisitions.
By Zachary DeLuca, Research Associate
Sources and Additional Resources
MFS Africa press release
https://mfsafrica.com/press-view/21
Verdant Capital press release
https://verdant-cap.com/verdant-capital-advises-baxi-a-leading-super-agent-in-nigeria-on-its-sale-to-mfs-africa/
Baxi homepage
https://baxibox.com/
Baxi mobile application
https://baxibox.com/how-it-works/
MFS Africa homepage
https://mfsafrica.com/
Verdant Capital homepage
https://verdant-cap.com/
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