Ghana-based fintech, ZeePay, has secured $18 million in senior secured debt funding

Ghana-based fintech, ZeePay, has secured $18 million in senior secured debt funding to scale its digital payment infrastructure and meet the liquidity demands of real-time remittance flows, a new report by TechCrunch has revealed.

The round was arranged by Verdant Capital IMAP and follows Zeepay’s $7.9 million Series A equity raise in 2021.

However, rather than equity dilution, this tranche focuses on ‘float financing’ – working capital that keeps remittance and payment operations liquid in real-time, much like how stablecoin issuers maintain fiat reserves or DeFi protocols use liquidity pools to support continuous swaps and lending.

The company, which has a presence in over 20 countries, specializes in facilitating the immediate settlement of remittances into mobile money wallets across Africa and the Caribbean, acting on behalf of prominent international money transfer organizations (IMTOs).

In 2023, Zeepay processed over 10 million transactions, delivering over $3 billion in value and expanding its services to include international airtime top-up, subscriptions, and even refugee payments.

This approach pivots on-chain projects in interesting ways. For instance, Circle's $USDC is being used by seven African fintechs to provide better financial services to local users.

Highlighting 7 African Fintechs Leveraging the USDC Stablecoin to Provide Better Financial Services to African Users.

From mobile banking to crypto payments and B2B services, $USDC is enabling new use cases in the market.

— BitKE (@BitcoinKE) December 18, 2023

This new debt facility marks a significant milestone for Zeepay as it underscores the company’s ability to attract capital and expand its operations.

It also speaks to the increasing interest of private equity firms in investing in high-growth fintech companies in emerging markets.

Earlier this year, reports indicated that private equity firms were investing in several noteworthy fintech companies, including Acorns, Amount, and Atomic.

These investments are part of a broader trend of increased activity by private equity firms in the technology sector.

In 2023 alone, private equity firms have deployed a staggering $150 billion in technology investments, showcasing their appetite for innovation and high-growth potential.

As crypto projects seek real-world adoption potential and use cases, Zeepay's model offers a compelling blueprint for integrating trusted, scalable infrastructure.

Its debt financing mirrors DeFi collateralization, its float acts like a liquidity reserve, and its use case - remittance - is one of the most powerful applications for blockchain-based finance.

This shared-collateral structure reduces risk, simplifies lender participation, and ensures transparency - something both TradFi and crypto investors can appreciate.

“This structure simplifies investor participation as we execute our growth plans,” said Andrew Takyi Appiah, founder and CEO of Zeepay.

“It reflects investor confidence in our ability to deliver fast, secure, and scalable financial services.”

The post Ghanaian Fintech Zeepay Secures $18 Million in Debt Funding for Scalability appeared first on Benzinga.

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