Convergence Partners seals Sh1.36bn investment in 42Markets Group

Convergence Partners has announced the acquisition of a strategic stake in 42Markets Group, an incubator, investor and builder of high-growth specialist businesses in the financial and capital markets sector.

The introduction of Convergence Partners as new investors will enable the 42Markets Group to accelerate growth through the buildout of its product set and further geographic expansion. 

The investment is through its Convergence Partners Digital Infrastructure Fund (CPDIF), a $296m private equity fund focused on investing in digital infrastructure opportunities across sub-Saharan Africa.

42Markets Group is focused on the digital transformation and improved efficiency of capital markets in Africa. 

Financial markets

The business is well placed to enable second tier capital markets to improve their capabilities to reduce friction and costs, and improve transparency and real-time risk management, across a broad range of financial products, ultimately extending the reach of banking and financial services to a broader cross section of the population. 

The transaction falls squarely into one of the emerging fintech themes that forms part of the focus of CPDIF – investing in business with high impact potential that are democratizing financial markets. 

“Convergence Partners has been instrumental in Africa digitally leapfrogging the world through key investments in fibre and data. Together, we will now do the same, connecting bulk providers all the way to retail across the spectrum. Only this time it means from central banks and other big asset generators right through retail investors, safely, accurately and covering all financial products,” said Andries Brink, Group Chief Executive Officer of 42Markets Group.

Digital infrastructure

“In a very real sense, the 42Markets companies become capital over-the-top providers on the infrastructure that Convergence Partners has established. We are excited to bring real and sustainable change to markets,” Brink added.

Chairman of Convergence Partners, Andile Ngcaba, on his part expressed his excitement with the new development.

“We are thrilled with our investment in 42Markets Group, which reflects our unwavering dedication to fostering digital infrastructure expansion throughout Africa. 42Markets’ expertise in decentralized finance (DeFi), regtech and fintech, particularly in expanding global financial and capital markets to underserved regions aligns perfectly with our vision of utilizing technology to bridge the digital divide and improve access for those in need,” Ngcaba said. 

“As blockchain adoption on the Continent continues to grow, we look forward to embarking on this journey with 42Markets to democratise financial markets and enhance accessibility.”