Nigeria’s TopCheck benefits from Silvertree’s $10 million pro-African money

TopCheck, a Nigerian online platform for comparing financial services, was recently acquired by Silvertree Capital on behalf of Silvertree Holdings, one of the leading online platforms in Africa, in a deal whose value was not disclosed. Silvertree Capital is the investment arm of Silvertree Holdings.

Established in 2014 established by European entrepreneurs, Christian Wiesner, Jose Figueiredo and Thomas Pilar, TopCheck grew rapidly in 2016, acquiring the capacity to process Gross Application Value per month worth up to N3 billion (c.$10 million). The internet start-up had raised around $1 million in seed financing from a group of investors in August 2015. It will join other SilverTree subsidiaries, such as Compare Africa Group (CAG) that is active in over three African countries: Nigeria, Kenya and South Africa.

The company, which christens itself the “Moneysupermarket for Africa”, provides consumers with an opportunity to make free price comparisons for insurance, loan and broadband internet plans online, and seeks to create transparency and provide exciting experience for consumers of financial products.

In a press release announcing the deal, Thomas Pilar, co-founder of TopCheck, had told analysts that the TopCheck team is excited to join forces with CAG. “Together, we are forming Africa’s undisputed leader in price comparison.”

Sources who are familiar with such transactions said that the CAG group will derive synergy benefits from the deal given that the group also offers online price comparison for goods and services through various websites. Analysts expect the company to utilise TopCheck’s market position within Nigeria Silvertree’s reach throughout the African continent to vastly expand the reach of both entities.

Details of the deal reveal that the founders Wiesner and Pilar will become advisors to CAG. The founders had been Managing Directors of TopCheck up to the point of the deal consummation.

“While our two companies had been competitors before, our strategies are completely in line: to be the number one online destination to acquire financial services in Africa,” Pilar said.

“With TopCheck’s market position in Nigeria, and Silvertree’s wide reach throughout Africa, we look forward to further accelerating the company’s growth across the continent.”

Manuel Koser,  Co-Founder and Managing Director of the Silvertree led the deal for the South African internet holding company. He said that there is significant potential for Africa’s comparison space, saying

“We want to replicate the success of Check24 in the German financial services and insurance comparison space. TopCheck joining our portfolio is another step in building Africa’s largest comparison conglomerate.”

The transaction is the latest of a number of deals undertaken by Silvertree since the announcement in January 2016 that $10 million had been earmarked for investment in African e-commerce and tech startups.