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    HomePartner ContentFintech Investor Crossfin Conquered South Africa — Now It’s Leaving the Sandbox

    Fintech Investor Crossfin Conquered South Africa — Now It’s Leaving the Sandbox

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    Two years after one of South Africa’s largest fintech private equity deals, Crossfin, a leading player in the local payments and smart funding ecosystem, is taking its ambitions global.

    The Cape Town-based fintech investor has launched a Singapore-based investment arm and taken a minority stake in UAE-headquartered Unity Digital Holdings — signalling its intent to grow beyond African borders and tap into the booming fintech markets of the Middle East and Southeast Asia.

    “Our goal since the founding of Crossfin is to put money behind strategic payment rails in Africa and beyond,” said Anton Gaylard, co-founder and chief experience officer. “We hope our investment in Unity is the first in a growing portfolio of likeminded assets across the Middle East, Africa, and Southeast Asia.”

    This new phase is backed by Standard Bank and the Turing Capital Fund, a sub-fund of Chronos Capital Fund VCC. Their support underscores investor confidence in Crossfin’s ability to scale its ecosystem-led investment model internationally.

    “Unity’s role in enabling central banks with solutions that drive payments innovation and sovereignty has exciting applications for Crossfin and the broader fintech ecosystem,” said Michael Jordaan, partner at Chronos Capital Advisors SA.

    Founded in 2021 by Muzaffar Khokhar, Unity Digital Holdings is a technology holding company focused on emerging markets. Its core assets include Mercury, a regional payments service provider, and Shukria, a licensed PSP in the UAE.

    Khokhar, who previously worked closely with South African fintech executives, says Crossfin’s investment will provide both capital and strategic value. “We are very happy for Crossfin to invest in Unity to accelerate the journey I started with my co-founders. This partnership builds on a decade of trust and collaboration,” he said.

    Gaylard noted the deal complements Crossfin’s broader portfolio, which includes South African heavyweights like Adumo, iKhokha, and Retail Capital.

    Crossfin was acquired in 2022 by a consortium led by Ethos’ Mid-Market Fund I, African Rainbow Capital, and the Crossfin management team, in one of the largest private equity-led fintech deals in South Africa. The transaction provided Crossfin with the capital firepower to pursue regional expansion and strategic acquisitions.

    Since then, the company has continued to scale its ecosystem model built around three verticals: payment technologies, smart funding, and venture capital.

    Adumo, Crossfin’s flagship payment processor, was recently acquired by Lesaka in a landmark deal. iKhokha, a subsidiary of Adumo, plays a critical role in digitising payments in South Africa’s informal sector, which comprises over one million merchants.

    In smart funding, Crossfin’s stake in Retail Capital enables data-driven credit to underserved SMEs, leveraging transactional data to fill gaps left by traditional lenders. Retail Capital was acquired by Tymebank in 2022. 

    Crossfin Ventures, while still a small part of the group, is an early-stage arm that provides exposure to next-generation fintech innovations — a strategic sandbox for scouting disruptive technologies.

    The group also acquired in 2021 Sybrin, a low-code, AI-powered software platform for financial institutions, as it pushes deeper into automation and machine learning applications.

    Fintech Fires Burn Bright Abroad

    Crossfin’s international push is well-timed. The UAE is rapidly positioning itself as a global fintech hub, buoyed by favourable regulations, low start-up costs, and dedicated fintech zones like the Dubai International Financial Centre. The local market is projected to grow to $3.56bn by 2025, according to Statista.

    Similarly, Southeast Asia is emerging as one of the fastest-growing digital payments markets globally. QR code transactions are expected to jump from 13 billion in 2023 to 90 billion by 2028, Juniper Research forecasts. Super-apps — platforms that combine banking, shopping, transport and more — are driving financial inclusion and user engagement across the region.

    In 2024, fintech startups in the Middle East and North Africa raised $700m, accounting for nearly a third of all startup funding in the region, according to Wamda. The buy-now-pay-later (BNPL) trend, popularised by players like Saudi-based Tabby, which recently hit a $3.3bn valuation, underscores investor appetite for scalable fintech platforms.

    Despite its pivot abroad, Crossfin insists Africa remains its anchor market. The company is targeting new investments in African fintechs and plans to leverage its expanded network to foster cross-market innovation. Last month, it backed Johannesburg-based fintech startup DigiSquad.

    According to McKinsey, Africa’s fintech sector could generate $47bn in annual revenue by 2028 — nearly five times the $10bn recorded in 2023 — if it reaches 15% market penetration, up from today’s 5–6%.

    Crossfin believes its experience operating in challenging African markets has laid a strong foundation for its next chapter. 

    “We’ve built a differentiated model that has consistently delivered growth and profitability despite limited access to capital and tough macro conditions,” Gaylard said. “Our move into the UAE and Singapore doesn’t replace our work in Africa — it builds on it.”

    As fintech ecosystems mature and capital flows become increasingly global, Crossfin’s next act may serve as a blueprint for African fintechs seeking scale beyond the continent.

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