The connection between Paga and Apposit started for the reason that former’s inception in 2009.
Tayo Oviosu and Eric Chijioke, CEO and CTO of Pagatech respectively, had been seeking to companion with a software program growth firm as a way to enhance their product. However they realised to try this, they must construct the platform themselves.
“After we began, the plan was to purchase a licensed software program. We recognized a companion and Tayo and Eric went to India for about two weeks in order that they may configure the platform to serve Paga. Based mostly on our necessities, they requested the companion what sort of effort was required to ship what Paga needed and he stated they’d need to rebuild the entire software program. We determined to simply construct it ourselves,” Jay Alabraba, co-founder of Pagatech Restricted, the mother or father firm of Paga informed Techpoint.
Apparently, Chijioke had additionally been a co-founder at Apposit alongside Adam Abate and Simon Solomon since 2007. The Ethiopian-based software program growth firm has over 100 shoppers and specialises in constructing software-as-a-service (SaaS) platforms for monetary providers, agriculture, and gross sales drive automation.
Thus, it was a simple resolution for Paga to process Apposit with constructing and sustaining its funds platform because it already had a technical staff in Addis Ababa. As per the phrases of the partnership, Apposit devoted 25 software program builders to completely work on the Paga platform. Though most of its engineers are nonetheless based mostly in Ethiopia, Paga has made strides in establishing a development team in Nigeria.
Curiously too, Apposit was a seed investor in Paga and in addition served in an advisory function to the funds firm.
Since then, the funds firm has gone on to boost $35 million and Oviosu says the corporate has processed 104 million transactions value $6.6 billion. Throughout its series B2 round of $10 million in 2018, the corporate introduced that it’ll increase into different markets inside and outdoors the continent — particularly to Ethiopia, Mexico, and the Philippines.
Paga hopes to finish most of its growth this yr and has proven no indicators of slowing down. The funds firm hired Ian Cleverley this month as its Group CFO to assist together with his huge trade expertise. Immediately, it introduced its acquisition of Apposit to hasten its growth into Ethiopia and East Africa.
With this acquisition, Apposit’s 63-man engineer staff shall be included into Paga because the funds firm Paga will begin operations when it obtains an area banking licence to function in Ethiopia. Additionally, Adam Abate will change into the CEO of Paga Ethiopia.
Worthy of notice is that cellular cash platforms in Ethiopia are owned by the banks as fintech firms can solely present expertise providers to those banks.
Nonetheless, the nation’s central financial institution — the Nationwide Financial institution of Ethiopia — is claimed to be placing up a framework anticipated to permit fintech firms within the nation to supply monetary providers to prospects.
Pending on when this framework is handed into regulation, Paga would possibly solely be capable of function as a monetary expertise supplier to banks in Ethiopia, a distinct mannequin to what the funds firm is accustomed to in Nigeria.
Ethiopia is predominantly a cash-based economic system not like Kenya, which is thought for its cellular cash market. Due to this fact, this presents an excellent alternative for Paga to achieve market share within the East African nation and with a complete workforce of 530, it should even be fascinating to see how Paga completes its growth into the Philippines and Mexico later this yr.