The exact value of the deal and the size of the stakes being purchased has not been disclosed. All regulatory approvals have already been obtained, including from the Competition Commission.
Entersekt is a Stellenbosch-based company that develops push-based authentication and app security technology. Its clients include Absa, Nedbank, Capitec, Investec, Swisscard, Equity Bank, Ecobank, Pluscard and First Bank of Colorado. It plans to use the capital injection to fund international expansion as well as research and development.
Entersekt CEO Schalk Nolte said the investment will allow the company to “accelerate beyond our very healthy organic growth and rapidly establish a presence in new territories”.
“We have a solid foothold in Africa, Europe and the US, but our technology can provide as much value to enterprises in other regions.”
Entersekt’s security products protect about 100m transactions monthly and “comply with the most stringent global regulatory guidelines”, the company said in a statement.
While the focus is on financial services, the products and solutions have wider application in industries such as healthcare and insurance, which also face security and regulatory challenges, it said.
“The company’s patented solution creates a secure channel between enterprises and users that not even Entersekt themselves can intercept, with banking clients seeing up to a 99% reduction in mobile fraud losses since implementation.”
“RMI, through AlphaCode, seeks investments in next-generation fintech opportunities. We look for high-growth businesses that are ready to scale and are led by strong entrepreneurial management teams,” said Dominique Collett, RMI senior investment executive and head of AlphaCode in a statement.
It is AlphaCode’s second investment after Merchant Capital, which provides small and medium enterprises with working-capital finance. — (c) 2017 NewsCentral Media