Nigerian Payment Company TechAdvance has raised US$1 million from Lamar Holding, a Bahrain-based energy investment company at a valuation of US$20 million.
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.
Earlier this year, the company was highlighted as one of the top companies to Inspire Africa in the London Stock Exchange Group’s Report for 2019.
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.”
Lamar’s investment will support TechAdvance’s strategy to substantially expand 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.
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, maximizing 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.”
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.