Orange invests EUR 1 million in Afrimarket

Money Transfer

Money transfer operator Afrimarket, which uses a 'cash to goods' model, has closed a EUR 2 million funding round comprising EUR 1 million from Orange and EUR 1 million from Elior's BIM investment fund. Afrimarket has 30,000 customers, mainly expats, and employs 35 people. It does not offer the same service as money transfer market leaders such as Western Union.

The funds that it transfers in Africa can only be used by the recipients to buy goods (food, home appliances, health, construction, etc.) from a network of 300 partner vendors in Senegal, Cote d'Ivoire, Benin and Togo.

Afrimarket charges a 5 percent commission on the vouchers sent for purchases in Africa. Afrimarket had a revenue of less than EUR 1 million in 2014. The backing of Orange, which comes with a commercial agreement, should allow it to scale up its business. Afrimarket be integrated with Orange Money from the summer. The company aims to enter Cameroon and Mali later this year.

Source: Telecompaper 28 January 2015