South African fintech incubator, 42Markets has received $10 million in growth funding from Convergence Partners Digital Infrastructure Fund (CPDIF), an investment group that focuses on digital infrastructure in Africa.
42Markets provides incubation services to specialist fintech businesses and claims to build "exponential shareholder value by identifying scalable business opportunities in specialist financial and capital markets categories and then using the group’s global reach and industry credibility to take these propositions to market."
The company has several businesses in its portfolio, including trading platform Mesh, financial advisory platform Andile, and FX Flow, a foreign currency risk management system.
According to the company, the funding was secured from 14 leading global development finance institutions based in Europe, the US, and Africa.
With the new investment, 42Markets plans to grow its fintech platforms and services to meet the demands of the market. The funding will be used to advance the growth and development of its portfolio companies, with the group seeking to engage with investors in CPDIF to explore working opportunities.
The investment comes after Convergence Partners announced it had closed its Digital Infrastructure Fund at $296m, surpassing its initial target by over 18%.