TechAdvance, a Nigerian fintech company, has raised $1m from Lamar Holding, the Bahrain-based energy investment company to drive expansion into emerging markets.
TechAdvance runs a network of subsidiaries, each of which focuses on different verticals in emerging markets including utility bill payments, digital financial services, and transportation software.
Lamar’s investment will support TechAdvance’s strategy to substantially support its global expansion, and help the company shift from being a technology Business Process Outsourcing (BPO) provider to a key player in the digital financial services and payment infrastructure space.
For Lamar, the investment represents an opportunity to broaden its successful portfolio into the technology industry, and give the company a foothold into the African continent.
TechAdvance, through its subsidiaries, recently acquired a microfinance bank and obtained approval in principle for a Payment Solution Service Provider (PSSP) license from the Central Bank of Nigeria.
The company also recently received approval from the Central Bank of Bahrain to operate in the country, signaling its intentions to grow beyond Nigeria and Africa.
Hani Abdulhadi, Vice President at Lamar Holding commented, “We are delighted to make this investment in one of Nigeria’s most exciting and innovative companies. This is an opportunity for Lamar and TechAdvance to collaborate and distribute its expansive suite of digital solutions to emerging markets in Africa and the Middle East. We were seed investors in one of TechAdvance portfolio companies since 2011, and it is impressive what Edmund and the team have been able to achieve since then.”
Speaking on the raise and plans for the coming years, Founder and CEO of TechAdvance, Edmund Olotu commented, “The payments space in emerging markets is buzzing with opportunities but faces a number of major barriers, especially regarding personal finance, accessing loans, maximising savings, and financial education for the unbanked and last-mile users. These funds will allow us to shift our focus to these opportunities – especially the launch of our digital bank, without compromising our existing business lines.”