CapitalSage: Story, Founders, Investors & Funding Rounds

Founded in 2014 under the name, ‘Divine Mercy,’ CapitalSage provides inclusive solutions to individuals and businesses for continuous value and wealth creation in Africa.

They are an integrated digital financial service group that provides people-driven empowerment and inclusive solutions to individuals and businesses for continuous value and wealth creation in Africa.

They retail top-notch innovations to African businesses and individuals so they can succeed and maximize their full potential.

Their agenda covers three significant pillars – financial inclusion, entrepreneurial development, and wealth creation – all steered by the force of innovative technology.

They also understand the task, and that is why their versatile team of tech heads, risk managers, engineers, financial analysts, and unmatched support specialists are guided intensely by strong values to help transform your dreams into stunning realities.

CapitalSage is the first fintech business to be listed on a private market platform, as well as the fintech company to raise the most debt in the Nigerian capital market.

Its offerings include the Kolomoni savings app and Kolomoni Agency Banking network and a reward-based value-added services app CashMore. 

It also recently introduced an integrated payment and business solution called CapiFlex.

The platform provides fund collection solutions, payment gateways, value-added service APIs, and office management solutions.

How it Works

CapitalSage Holdings is an indigenous conglomerate with four subsidiaries. They operate across the Financial/fintech, Agribusiness, and Healthcare sectors. 

They started as a small-time microfinance institution and have since morphed into a group of companies with an interest in key sectors that will drive the future of Africa.

The company started operations as a business that gave loans to market women. But they wanted to do more than that, which is why they evolved. Of the services they offer, the first company they have under the holding structure is the fintech group, CapitalSage Technology.

CapitalSage Technology owns products like Kolomoni by SunTrust MFB which allows certified individuals to perform full banking services like savings, investment, top-up, instant loans and so much more. 

CapitalSage also has the Kolomoni Agent Banking Network with over 50,000 agents providing basic cashout and deposits across Nigeria and beyond. 

Both products are housed under their microfinance bank and regulated by the central bank of Nigeria. The other product under fintech is CapiFlex, a payment solution for businesses.

They launched CapiFlex in mid-2021 to provide flexible payment solutions for businesses and the government. 

Since launch, they have on-boarded over 10,000 merchants and processed over 20 billion nairas in transaction volume. 

They recently just launched one of their CapiFlex products with an escrow feature in Kenya to allow businesses not only to collect payments but also to help them build customers’ trust.

Founders

John Alamu

John Alamu

John A. Alamu is the Founder, CEO, and Group Managing Director of CapitalSage. 

He previously worked at International Fertilizer Development Center (IFDC) as a Monitoring And Evaluation Consultant.

John A. Alamu attended Olabisi Onabanjo University.

Additionally, John is driven by the dream of an enabled Nigeria where individuals can achieve their financial quests. This vision propelled my diversification in fintech, agriculture, and healthcare.

Investors & Funding Rounds

United Capital Plc

United Capital Plc

CapitalSage Technology Limited has successfully raised $4 million (N2.2 billion) in a Series 1 Private Company Notes (“PCN”) issuance, under its N10 billion program, to accelerate the company’s growth across different markets both in Nigeria and Africa.

The Series 1 issuance, with a 365-day tenor, was subscribed with firm commitments from Fund managers and other institutional investors, and United Capital Plc, acted as sole adviser and arranger on the transaction.

The successful debt-financing round came on the heels of a positive investment appraisal of A3 (short-term) and BBB (long-term) with a stable outlook received from GCR Ratings, coupled with the strategic partnership and guidance of United Capital.

Additionally, the milestone achievement makes CapitalSage the first FinTech Company to be noted on a Private Markets platform and the FinTech Company, which has raised the highest debt amount in the Nigerian Capital Markets.

CapitalSage joins the pool of other fintech firms that have raised funds for their business operations, such as Appzone ($10 million), Lidya ($8.3 million), Cowrywise ($3 million), and Bankly ($2 million).

Main Competitors

Finja: This is a financial services platform that offers payments, lending, and collection services to professionals and SMEs.

Upside: Upside Financial is an SEC-registered investment advisor providing brokerage services.

Ando Money: It enables customers to join and drive a transformative movement to combat the climate crisis through carbon-reducing banking.

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