Enza, a fintech startup founded in 2022 by former Network International executives Hany Fekry and Hamish Houston, has successfully raised $6.75 million in seed funding. This investment, led by Algebra Ventures and Quona Capital, aims to enhance digital payment infrastructures across Africa by bridging the gap between banks, fintechs, and merchants.
Enza positions itself as a comprehensive payment processor, addressing both sides of financial transactions. Unlike established entities such as Flutterwave and Moniepoint, which primarily focus on merchant acquiring, Enza targets both the issuance and acceptance of payments. The startup’s initial operations are concentrated in Egypt, Nigeria, and South Africa—three of Africa’s largest financial markets.
The company’s strategy involves facilitating seamless transactions and fostering enduring relationships between banks, fintechs, and small businesses. By integrating small businesses into the financial system, banks can offer a suite of additional services, including loans, savings accounts, and insurance products. Andrew Key, an executive director at Enza, emphasizes, “Payments are the gateway, but the value is in the data and the services you can layer on top.”
This initiative comes at a pivotal time when African banks are recognizing the need to reclaim market share from fintech companies that have been serving small and medium-sized enterprises (SMEs). Enza aims to equip banks with the necessary technology to compete effectively. Houston notes, “Banks have realized they gave up too much ground to fintechs. We want to give them the tech to compete and win it back.”
A key advantage of Enza is its deep integration with both local and global payment networks. The platform connects with regional card schemes like Nigeria’s Verve, Egypt’s Meeza, and the pan-African AfriGo, alongside international giants Visa and Mastercard. It also interfaces with real-time payment networks such as NIBSS in Nigeria, PayShap in South Africa, and InstaPay in Egypt, as well as mobile money platforms, QR codes, and buy-now-pay-later (BNPL) services.
Transparency is a significant focus for Enza. Many banks struggle to monitor the activities of their payment aggregator partners or downstream merchants. Enza’s platform offers banks enhanced oversight of their payment ecosystems, ensuring compliance and scalability.
Since launching operations in early 2023, Enza has processed over 10 million monthly transactions across six African markets: Rwanda, Nigeria, Ghana, Egypt, Uganda, and South Africa. The company reports a monthly transaction volume growth of 35% to 40%, with expectations to double within two years.
The founders bring extensive industry experience to Enza. Fekry previously served as chief commercial officer at Emerging Markets Payments (EMP), which was acquired by Network International, where he later became managing director. Collectively, the Enza leadership team has collaborated with nearly 200 banks. However, their current focus is on establishing 30 to 40 high-quality bank relationships, prioritizing quality over quantity.
Initially self-funded, Enza later sought external investment, strategically partnering with Algebra Ventures and Quona Capital. Tarek Assaad, managing partner at Algebra Ventures, commends the leadership team, stating, “The Enza leadership team has an impressive track record of starting, growing, and exiting fintech businesses across the continent.”
Enza’s approach reflects a broader trend in Africa’s financial sector, where traditional banks are increasingly collaborating with fintech companies to enhance their technological capabilities and better serve the SME market. By providing a robust infrastructure that supports both payment issuance and acceptance, Enza is well-positioned to play a pivotal role in the continent’s evolving financial landscape.
