TerraPay announced today that a consortium of investors, including Prime Ventures, Partech Africa and management acquired the company for an undisclosed sum. In addition, the same investors, joined by IFC, invested $9.6 million in TerraPay to fund the company’s expansion.
TerraPay, a company incubated by Comviva, the India-headquartered mobile solutions provider, provides Payment Infrastructure Services that help more people around the world to transfer money quickly, safely, and affordably. The company does this by enabling payment service providers such as banks, mobile money operators, money transfer operators or other payment providers to instantly connect to each other at a low cost. Since its start in 2015, TerraPay has acquired more than 25 licenses to operate in over 60 countries in Africa, Asia and Europe and is expanding globally.
Ambar Sur, Founder and Chief Executive Officer of TerraPay, said: “We believe in our mission to address financial inclusion by making real time national, regional and global payments accessible to everyone. We are excited by this validation from our marquee investors, and look forward to growing rapidly and reaching most of the world’s underserved in the coming years.”
TerraPay management developed the fintech company to address the pain points people in many countries experience when trying to make payments across different channels. The cost to send money to and from emerging countries, especially in Africa and Asia, are some of the highest globally, averaging 9.3 percent compared to the global average of 7 percent, yet remittances are a major contributor to the GDP of recipient countries. A large portion of the remittance cost is related to cash handling at the sending and receiving end. At the same time, the digital payment ecosystem is fragmented with many mobile money providers developing their own network alongside financial institutions with no real interoperability solution.
TerraPay is a game-changer because it connects MTOs, mobile money networks and financial institutions to a simple, central platform where all payment players can reliably connect to any financial network, facilitating a seamless end-to-end customer payment experience.