Zeepay, a fast-growing player in the digital remittance and mobile money market, has secured $18 million in debt funding, according to a report by Africa Global Funds. The investment, arranged by the South Africa-based financial advisory firm Verdant IMAP, signals strong market confidence in Zeepay’s cross-border payment solutions and growth strategy across Africa.
The investment, structured as senior secured debt, provides Zeepay with crucial working capital to support its float financing operations across its mobile money and cross-border payment solutions.
To facilitate the participation of additional lenders in future funding rounds, Verdant IMAP structured a shared-collateral framework. Under the setup, both the new investors and Zeepay’s existing international lending partners pledge the same pool of assets as security. A neutral security trustee holds these assets, while an independent monitoring agent checks them daily to ensure their value remains sound.
By giving every lender an equal, first-priority claim (“first-lien”) on the shared assets, Zeepay ensures a clear and fair process for recovering funds if repayment issues arise. New financiers can tap into this existing collateral pool on the same terms (“pari-passu”), avoiding lengthy negotiations each time someone new wants to invest.
Andrew Takyi Appiah, Founder and CEO of Zeepay, said: “I am grateful for the support of the new investors and ongoing support of our existing partners. The new structure will allow for simple and transparent onboarding of new investors as required, as we implement our growth strategy.”
