The investment was announced by Cactus Advisor’s founder and CEO, Zachariah George while speaking at the Allan Gray Orbis E2 Accelerator program in Cape Town. He said the company was excited to be investing in both companies, recognising that they had both graduated from leading global accelerator programs.
Flutterwave is a San Francisco-based startup founded by Iyin Aboyeji who left Andela to start the company. It provides end-to-end payments technology and infrastructure which enables payment service providers, global merchants, licensed money transfer operators and pan-African banks to process payments to and from Africa with one API integration. Flutterwave is a graduate of the prestigious Y Combinator accelerator program and just this September, the company expanded operations into Kenya.
SA based, e-factor, created a digital factoring platform where companies can sell their receivable invoices through an auction to investors with the highest bid. By investing in these invoices, investors obtain new short-term investment instruments with low-risk returns. Formerly called InvoiceXchange, e-factor is a graduate of the Barclays Tech Lab Africa Accelerator.
Cactus Capital invests in early stage disruptive tech ventures across the African continent and beyond. CEO Zachariah George said, “Corporate Africa with its powerful consortium of financial services firms, retailers, telecommunication firms, insurance companies and media houses – all of whom are yet to seriously tap into the innovation pipeline that tech startups offer – provides the ideal platform for commercializing proof-of-concept agreements with startups that serves as a perfect risk mitigation shield to investors looking for returns in the African venture capital sector.”
Both companies have not announced what they will do with the investment but we expect it will most likely be used to scale operations and expand into more markets in Africa.