In its second deal in Africa in a month, Amadeus Capital Partners is backing Hepstar, the Cape Town-headquartered digital insurance distributor, with $2 million through the UK technology investor’s Amadeus IV Digital Prosperity Fund. Additional terms of the transaction were not disclosed.
The capital will be used to invest to accelerate the firm’s technology development, enhance its branding and sales and hire more people to help it expand its geographic reach. Within the past 12 months, the company has grown its presence in the rest of Africa, the Middle East, Europe and Australia. In 2016, the firm anticipates revenues to grow by 150%, Brett Dyason, Hepstar’s CFO was quoted as saying in the statement announcing the investment.
The firm was founded in 2013 to meet the demand from airlines, travel companies and e-commerce companies to generate revenues from the sales of ancillaries. According to the firm the global opportunity for airline ancillaries totals $60 billion alone.
“Amadeus Capital is excited to be involved in Hepstar,” said Andrea Traversone, Investment Partner at Amadeus Capital Partners. “They are solving a real problem regarding insurance distribution during a time when ancillary revenue is becoming increasingly important for e-commerce companies. Given the prowess they have demonstrated in this niche we expect they will be a leading supplier in this market in the near future.”
This is the second deal led by Andrea Traversone in South Africa this year. In early February, Amadeus made is first direct investment foray in Africa, leading a $40 million growth investment round in Travelstart, a $200 million online travel agency based in Cape Town.