Global payments company, Visa is set to acquire Cape Town based mobile financial services provider, Fundamo for $110 million.
Fundamo which is owned by a group of SA investors including Sanlam, Remgro and HBD Venture is an investment conglomerate founded by well known South African entrepreneur/billionaire, Mark Shuttleworth.
Fundamo is currently operational in 40 countries, including 27 countries in Africa, Asia and the Middle East.
It’s taken some time but the concept of transferring money using cellphones is catching on. “The idea was about five years ahead of its time,” says Fundamo CEO Hannes van Rensburg.
Fundamo had faced business troubles earlier but its acquisition by Visa is expected to help it better extract value from its mobile phone subscriber base.