Africa’s fintech sector is booming, and one venture capital firm has emerged as a key player in fueling its growth: QED Investors, a U.S.-based firm with a laser focus on financial technology. With nearly $5 billion in assets under management and a portfolio that includes 28 unicorns globally, QED has turned its attention to Africa, backing some of the continent’s most promising fintech startups.
In recent months, QED has led high-profile funding rounds for companies like Raenest, Stitch, Moniepoint, and FlapKap, signaling a deepening commitment to Africa’s digital finance revolution. The firm’s strategy? Bet on startups solving critical payment and financial inclusion challenges — a sector ripe for disruption in a region where traditional banking infrastructure remains inadequate for millions.
A Series of Strategic Bets
In February, Raenest, a Lagos-based fintech facilitating cross-border payments for remote workers, secured an $11 million Series A round led by QED. The startup, which has processed over $1 billion in transactions since 2022, plans to expand into Egypt, Ghana, Kenya, and the U.S. while consolidating its retail and business products under a single brand.
Earlier this month, QED led a $55 million investment in Stitch, a South African open banking infrastructure provider that recently acquired payment processor Exipay. Stitch’s technology enables businesses to securely link users’ bank accounts for seamless transactions — a critical need in Africa’s fragmented financial landscape.
These deals follow QED’s earlier moves, including its $50 million investment in Moniepoint (formerly TeamApt) in 2022, Nigeria’s largest agency banking platform, which processes over $100 billion annually. The firm also backed FlapKap, an Egyptian revenue-based financing startup that raised $34 million in a pre-Series A round, and Precium, a credit infrastructure provider that secured $5.2 million in seed funding.
The Africa Playbook
QED’s aggressive push into Africa is spearheaded by Gbenga Ajayi, the firm’s first partner dedicated to the continent. A fintech veteran with experience at Wise (TransferWise), Revolut, and Google, Ajayi joined QED in 2022, alongside Chidinma Iwueke, and has since become a pivotal figure in shaping its Africa strategy.
“I am proud to bring Africa to QED and QED to Africa,” Ajayi said when announcing the Moniepoint deal. “Enabling digital payments is exciting, but providing merchants with the tools and credit they need to grow is profoundly impactful.”
Ajayi’s approach goes beyond capital. He emphasizes mentorship, market access, and operational expertise, leveraging QED’s global fintech network to help portfolio companies scale. His background — spanning product development, partnerships, and growth — positions him as a hands-on investor in a market where regulatory hurdles and infrastructure gaps demand more than just funding.
Why Africa? Why Now?
Africa’s fintech sector has attracted over $3 billion in funding since 2021, with Nigeria, Kenya, South Africa, and Egypt leading the charge. Yet, challenges persist: only 49% of adults have a bank account, and cross-border payments remain costly and inefficient.
QED’s thesis aligns with these gaps. The firm targets startups that:
- Simplify payments (Raenest, Moniepoint)
- Enable open banking (Stitch)
- Expand credit access (FlapKap, Precium)
Nigel Morris, QED’s co-founder, hints at the importance of unit economics and profitability — a shift from the “growth at all costs” mentality that dominated fintech in recent years. “The keys to survival now are product-market fit and clear paths to profitability,” he said after closing QED’s $925 million fundraise in 2023.
QED’s growing portfolio reflects its confidence in Africa’s fintech potential. But the firm isn’t alone: Tiger Global, Sequoia Capital, and SoftBank have also backed African startups, though QED’s fintech specialization gives it an edge.
For founders like Raenest’s CEO, QED’s value lies in its operational expertise. “They’ve built and scaled fintechs globally,” he noted. “That’s invaluable for navigating Africa’s complexities.”
As regulatory frameworks evolve and competition intensifies, QED’s bets will test whether Africa’s fintech boom can mature into a sustainable revolution — one transaction at a time.