Launch Africa Ventures Sells Stake in Peach Payments to 27four Nebula Fund
Launch Africa Ventures, a prominent pan-African venture capital firm, has successfully divested its secondary stake in South African fintech company Peach Payments to the 27four Nebula Fund. This transaction reflects a strategic move within the expanding landscape of African venture capital.
Peach Payments: A Rising Star in Payment Solutions
Established in Cape Town in 2012, Peach Payments has rapidly emerged as a critical player in the African Payment Solutions Provider (PSP) sector. The company is renowned for simplifying offline and online payment processes across South Africa, Kenya, and Mauritius. Notably, Peach Payments raised $31 million in a Series A funding round earlier in 2023, with participation from Launch Africa Ventures among other investors from prior rounds.
27four Nebula Fund: Investing in Innovation
The secondary sale to the 27four Nebula Fund, a leading South African investment management and diversified financial services group, reinforces the fund’s commitment to fostering high-growth, technology-driven enterprises. Launched in May 2023, the Nebula Fund is specifically designed to support businesses that are at the forefront of technological innovation across various sectors.
Significance of the Transaction
This strategic transaction not only grants the Nebula Fund access to a high-growth African fintech business but also underscores the increasing importance of secondary deals within the African venture capital ecosystem. Such transactions create liquidity opportunities for early investors, while simultaneously allowing new institutional investors to engage with businesses poised for expansion.
Expert Insights on the Deal
Tishagna Naidoo, Principal at 27four, emphasized the strategic value of this investment. She noted that the transaction allows the Nebula Fund to gain exposure to influential African fintech companies through secondary investment opportunities facilitated by Launch Africa Ventures. “Peach Payments has established essential payment infrastructure for merchants navigating an increasingly digital and cross-border landscape,” Naidoo stated.
The Role of Secondary Deals
Naidoo further elaborated on the significance of secondary deals in the evolving venture ecosystem, highlighting their dual role in providing liquidity for earlier investors while offering a pathway for later-stage investors to back established firms as they transition into their next growth phase. She identified Peach Payments as a prime illustration of the emerging African technology narrative that aligns with these objectives.
Launch Africa Ventures’ Commitment to Growth
Zakaria George, co-founder and managing partner of Launch Africa Ventures, noted that his firm was the first pan-African fund to invest in Peach Payments back in 2021, aiding the company’s evolution from a regional payments gateway for small and medium-sized enterprises to a robust service for merchants across nine African nations. He underscored the critical role of secondary liquidity in the African venture capital landscape, which helps to reinforce future engagements from both limited partners and angel investors in an increasingly matured ecosystem.
