SOUTH AFRICA – Digital foreign exchange and payment platform AZA Finance, has agreed to acquire cross-border payments specialist Exchange4Free, making it the largest non-bank provider of FX treasury services across Africa.
“This acquisition moves us further towards our goal of opening up intra-African and frontier market foreign exchange flows,” said Elizabeth Rossiello, CEO and Founder of AZA Finance.
“Exchange4Free’s ethos and innovative solution is a great fit for AZA Finance in helping to build the digital infrastructure of the future that brings innovation and efficiency to meet corporate treasury and FX needs in frontier markets,” she emphasized.
Acquiring Exchange4Free, the largest South African non-bank currency broker, will enable AZA Finance to more than double transaction volume to US$2.5 billion in 2021 through synergies and leveraging cross-selling opportunities, while extending the company’s reach to 115 countries spanning Africa, Europe, the Middle East, Asia-Pacific and America.
As the response to COVID-19 drives increased volumes of business transactions online and away from physical bank branch infrastructure, Africa – where SMEs have faced the most expensive and time-consuming processes – is leading the challenge against established dollar-based systems using APIs and other network technologies.
Amid the sector’s expansion is a race to consolidate, as seen in deals such as Santander’s acquisition of a majority stake in Ebury last year, and expansion into traditional business banking territory by the likes of Monzo, Revolut and TransferWise.
“This acquisition moves us further towards our goal of opening up intra-African and frontier market foreign exchange flows”Elizabeth Rossiello – CEO and Founder, AZ Finance
Authorized by the FCA for the UK and Bank of Spain for Europe, AZA Finance provides an A-to-Z full suite of corporate treasury and FX products from the start to the “last-mile” for enterprises operating in frontier markets.
With offices in Nigeria, Ghana, Senegal, Uganda, South Africa, Kenya, Spain, the UK and the Single Euro Payments Area (SEPA), AZA’s partnership network includes money transfer operators (MTOs) like Western Union, World Remit, Azimo and IDT (Boss Revolution).
The acquisition enables AZA Finance to leverage Exchange4Free’s own platform for their services, including its set of APIs that provide companies with the FX, treasury, and regulatory compliance services they need to make cross-border payments into South Africa from more than 100 countries.
“The acquisition by AZA Finance will enable us to reach the scale we need to optimise this technology to deliver highly customisable solutions for our clients,” added Mark.
The acquisition follows a combined Series B debt and equity funding round in which AZA Finance raised US$35m for expansion of operations in the Middle East and North Africa over the past 18 months, including a US$15m debt facility with the Development Bank of Southern Africa (DBSA) to build its activities in the region.