Apis Partners, a private equity fund manager focused on financial services investment opportunities in Africa and Asia, is backing Nigeria’s Bankers Warehouse with a reported $30 million in exchange for a significant, if undisclosed stake. The deal, which was led for Apis by Lagos-based partner, Rotimi Oyekanmi, is the sixth investment for the firm’s inaugural fund, Apis Growth Fund I, which closed with $287 million in March this year.
Bankers Warehouse is a provider of cash management solutions in Nigeria, providing the country’s financial institution and companies with the ability to securely outsource their critical cash management functions. In addition to strengthening the firm’s capital structure, the additional funds will be used to support the growth of Bankers Warehouse’s existing cash processing and cash-in-transit services as well as expand both the range of the solutions it offers its clients and broaden its national footprint.
“Bankers Warehouse has consistently delivered high quality cash management solutions to its customers, driving efficiencies through shared infrastructure and technological solutions aimed at reducing the cost to the financial system of processing cash,” said Matteo Stefanel, Apis’ Managing Partner. “We see a significant opportunity to further leverage technology within cash logistics to increase convertibility of digital and physical cash thereby augmenting user confidence and inclusion within the digital financial system.”
The 10-year fund had already deployed $130 million in capital in 5 deals since it held its first close in August 2015. Bankers Warehouse is the first of another 5 investments Apis expetcs to add to the fund’s portfolio in the next couple of years. To date, the fund has backed Microcred, a pan-Africa mSME lender, Electronic Payment and Services, an Indian ATM service provider, Transfast, a remittance company focused on Asia and Africa, DPO Group, an online payments processor and Start Health and Allied Insurance, an Indian retail health insurer.
Udo Udoma & Belo-Osagie provided Apis with legal advisory services for the transaction. Olajide Oyewole acted in a legal capacity for Bankers Warehouse, with Stanbic IBTC Capital acting as their financial advisor.