Launch Africa Ventures, a prominent Africa focused venture capital firm, has transferred its secondary stake in South African financial technology company Peach Payments to the 27four Nebula Fund.
Recognized as one of Africa’s most active early stage investors, Launch Africa Ventures is a prominent pan African venture capital fund with a portfolio of more than 180 companies across its two investment funds.
Established in Cape Town in 2012, Peach Payments is a rapidly expanding African payment solutions provider that simplifies and improves access to both online and offline payment services across South Africa, Kenya, and Mauritius. In 2023, the company secured US$31 million in Series A funding, with Launch Africa Ventures participating as an investor from a previous funding round. Mobile Payments & Digital Wallets
Launch Africa has transferred its secondary stake in Peach Payments to 27four, a prominent South African investment management and diversified financial services firm recognized for creating innovative, broadly diversified investment solutions for retail and institutional investors alike. Introduced in May 2023, the Nebula Fund was established to invest in fast growing, technology driven businesses.
The deal gives the Nebula Fund exposure to a rapidly growing African fintech company that has established a solid presence in payment acceptance, processing, reconciliation, and merchant support. It also highlights the increasing importance of secondary transactions within Africa’s venture capital market, providing liquidity for early backers while allowing new institutional investors to invest in expanding companies as they continue to grow.
“This transaction allows the 27four Nebula Fund to gain exposure to a leading African fintech company through a secondary investment acquired from Launch Africa Ventures,” said Tishanya Naidoo, principal at 27four. “Peach Payments has developed essential payment infrastructure that supports merchants serving increasingly digital and cross border markets. We believe the company’s growth path closely aligns with our objective of investing in scalable, technology driven businesses across Africa.”
According to Naidoo, secondary transactions are becoming an increasingly significant component of a developing venture capital ecosystem.
“They enable early investors to unlock liquidity while allowing later stage investors to invest in established companies as they move into their next stage of expansion. Peach Payments represents the kind of high growth African technology company we aim to invest in,” he said.
Zachariah George, co-founder and managing partner at Launch Africa Ventures, said the firm became the first pan African fund to invest in Peach Payments during its 2021 seed funding round, supporting the company’s journey from a small regional payment gateway serving South African small businesses to a payment platform serving merchants of all sizes across nine African countries.
“As a venture capital fund focused on early stage investments, the value of secondary liquidity within Africa’s venture capital ecosystem cannot be overstated, as it encourages greater involvement from both limited partners and angel investors while helping recycle capital into a fast maturing venture market. Our collaboration with 27four represents a significant step in achieving this,” he said. VentureCapital