CapitalSage Technology Limited, an integrated fintech group in Nigeria, has successfully raised $4 million (N2.2 billion) in a Series 1 Private Company Notes (PCN) issuance, under its N10 billion programme, to accelerate the company’s growth across African markets.
The series 1 issuance, with a 365-day tenor, was subscribed with firm commitments from fund managers and other institutional investors, and United Capital Plc, Nigeria’s financial services group, as the sole adviser and arranger on the transaction.
“Our expansion is mostly driven by our agenda to provide a sustainable and inclusive digital financial infrastructure that continually empowers individuals and businesses and facilitates wealth creation. We work closely with our customers to make sure they have the right tools in order to go wherever their aspirations take them,” said John Alamu, group managing director, CapitalSage.
According to Alamu, the fintech company is constantly at the cutting edge of digital innovation that increases financial access across Nigeria. “With this funding, we are poised to further redefine the finance landscape and scale up financial inclusion across Africa,” he stated.
The successful debt-financing round came on the heels of a positive investment appraisal of A3 (short-term) and BBB (long-term) with a stable outlook received from GCR Ratings, coupled with the strategic partnership and guidance of United Capital.
This makes CapitalSage the first fintech company to be noted on a private market platform and the fintech company which has raised the highest debt amount in the Nigerian capital market.
Babatunde Ajayi, head, capital markets and advisory at United Capital, said the company was able to attain an investment-grade rating from GCR, enabling this first entry into the capital market.
“CapitalSage Technology is a fintech which offers a wide range of financial and technological solutions service range and has shown huge growth potential,” Ajayi said.
According to him, the transaction affirms CapitalSage’s strong management execution capacity and corporate governance position. In addition, it has paved the way for other fintechs to approach the Nigerian Capital Market, especially the deep pool of private market.
“United Capital plc, leveraging on its deep knowledge of the capital and debt markets in Africa, is well-positioned to provide the right support for fintechs seeking to access funding irrespective of size and length of existence,” said Ajayi.
The company was initially founded in 2014 under the name ‘Divine Mercy’ with a mandate to financially empower market women and later evolved from a micro-lender into a full-service financial technology group, servicing individuals, MSMEs, corporate organizations, and government institutions.
CapitalSage owns Kolomoni Savings Apps, CashMore, a reward-based VAS platform, and Kolomoni agent banking network with thousands of agents in over 24 states of the federation with a growing operation in the Republic of Benin.
CapitalSage also recently launched CapiFlex; an integrated payment and business solution that provides entrepreneurs and myriad organisations with a pool of fund collection platforms, payment gateways, value-added service APIs and office management solutions.