Convergence Partners have announced an investment of $20million by the Convergence Partners Communications Infrastructure Fund (CPCIF) for a strategic, minority stake in Venture Garden Nigeria (VGN), a diversified fintech company with significant operations in Nigeria.
Speaking on the investment, CEO of VGN on Tuesday in Lagos, Bunmi Akinyemiju, said the current solutions are tailored for financial services, education, aviation, power, downstream oil and gas and cyber-security.
He said: “We believe that the fintech space is a catalyst for technology-driven transformation in Africa and are pleased to have a specialist investor like Convergence Partners on board, who shares our vision of technology as a key enabler and driver of economic development, for example in the education sector”.
“The culture of Convergence Partners is one that aligns well with ours and we are confident that the professionalism, commitment to excellence and fearless approach to disruptive innovation that we strive for, is what they look for in the teams they back. With the support of Convergence Partners, we believe we can accelerate the execution of our strategy, and achieve a wider customer reach’’, he added
According to Akinyemiju, CPCIF, the largest fund dedicated solely to ICT infrastructure in Africa, is currently deploying capital to build a portfolio of investments across the ICT spectrum, improving access to technology as well as broadband services.
He specifically said that VGN is a holding company for a group of financial technology entities that provide innovative, data-driven, end-to-end technology platforms addressing reconciliation and payment processing inefficiencies across multiple industry verticals.
“Current solutions are tailored for financial services, education, aviation, power, downstream oil and gas and cyber-security.
“The injection of substantial new equity capital into VGN would enable the company to accelerate its growth plans domestically in Nigeria, and across the West African region”, he said.
It would be recalled that Convergence Partners recently announced the final close of CPCIF (with capital of over $200 million) and the opening of an office in Lagos, Nigeria’s commercial hub. Convergence Partners’ local presence would enhance the management and monitoring of portfolio companies in this key region as well as Convergence Partners’ on the ground transaction capability.