Investec Africa Private Equity Fund 2 (IAPEF2) has completed a follow-on growth equity investment in its portfolio company - wiGroup, a mobile-transacting software provider.

Terms of the equity round were not disclosed.

Peter Baird, Managing Principal - Head of African Private Equity at Investec Asset Management, said: “The equity was raised to strengthen wiGroup’s balance sheet, and to provide capital for the Company to accelerate its growth, particularly in international markets.” 

All of wiGroup’s institutional investors – Crossfin, Virgin Money, Smollan, and Investec Asset Management – have committed additional capital to the round.

IAPEF2, which is a $295m fund raised in 2014, remains the largest shareholder in the Company.

Founded in 2007, wiGroup has established itself as a leading provider of enterprise software in loyalty, coupons, and rewards (LC&R).

WiGroup is also a leading provider of merchant integration and mobile payment services.

The company delivers these cutting-edge solutions to leading clients in retail, banking, quick service restaurants, insurance, and telecommunications.

The additional equity will support wiGroup’s accelerated growth, particularly in LC&R, both in South Africa and in international markets.

Since Investec Asset Management made its initial investment in 2015, wiGroup has more than doubled its revenues, client numbers and store footprint.

“WiGroup has been investing heavily in upgrading and expanding its core software offering. We now believe that wiGroup’s loyalty/coupon/rewards and mobile commerce software are competitive with any provider on the planet.  The Company’s primary focus is now on commercializing this software stack in South Africa and internationally,” Baird told Africa Global Funds.

Investec Asset Management established an African private equity capability in 2008.

The Private Equity strategy focuses on growth capital and buyout investments in established mid-market and larger companies in Africa, with the objective of supporting the creation of local or regional champions in their respective industries.

“Our Fund 2 is roughly 85% invested or committed,” said Baird.