MFS Africa has signed an agreement to purchase for an undisclosed amount Capricorn Digital (Baxi), a leading digital solutions and distribution company in Nigeria, TechCabal reported.
Capricorn Digital is a fully digital company with products ranging from Baxibox/pos, BaxiPay, B2B channels, and BaxiRIMS. Through these products, the Baxi brand has boosted its retail footprint and digital presence in households across Africa’s largest economy.
Baxi products help customers with their daily payment needs, including utility bill payments, airtime purchases, pay-TV and data subscriptions, withdrawals and money transfers.
The latest deal, subject to approval from the Central Bank of Nigeria (CBN), will see MFS Africa take over Capricorn Digital’s active 90,000 agent network in the Nigerian market.
TechCabal quoted Degbola Abudu, founder and CEO of Capricorn, as saying that the deal is the second-largest of its kind in Nigeria’s fintech space behind Stripe’s $200-million purchase of Paystack in 2020.
MFS Africa is a leading pan-African fintech company operating the largest digital payments hub in Africa. The platform connects mobile network operators across the continent through a single API.*
MFS Africa was founded by Beninese tech tycoon Dare Okoudjou in 2009 and has an estimated 320 million mobile money customers interacting across various digital wallets.
Its API offers mobile remittance services, enables merchant payment, bulk payment, bank-to-wallet transfers and an array of other cross-border digital payments services. Paga, MTN Mobile Money, Ecobank and Safaricom are a few companies integrated into its interoperability hub.
*API means Application Programming Interface, a software intermediary that allows two applications to talk to each other.