Convergence Partners, an ICT specialist firm will invest $5 million for a stake in fintech ChannelVAS (CVAS). Channel VAS is a mobile financial services provider offering airtime credit, airtime advance services, handset loans, and big data analytics.
Convergence Partners is controlled by Andile Ngcaba, an ICT industry veteran. It plans to exercise preferential and exclusive rights in acquiring this stake and rebalancing their intra-consortium position. Last week Ethos announced the sale of its 1.4% stake in Channel VAS. The company gave the sale figure at $5M. After the sale of the stake, Ethos Capital will remain with an 8.89% stake of Channel VAS if we use the transactional valuation of $31.7 million. According to Ethos, the proceeds from the sale will be used to strengthen the value of existing shareholders.
Brandon Doyle, CEO at Convergence Partners expressed pleasure in investing in ” digital data and AI technologies” when coming up with “robust solutions” to meet the financial needs of underserved customers.
As a pan-African ICT focussed private equity player Convergence Partners continues to emphasize the importance of Continental development in fostering continental growth.