Enza Secures $6.75M Funding Led by Ex-Network International Executives

Network International Alum Launch Enza to Address Payment Infrastructure Gaps

Network International, a Dubai-based company, has risen to prominence as a leading payment processor throughout the Middle East and Africa over the last ten years, bolstered by strategic acquisitions.

Despite this success, established companies can sometimes struggle with the pace of innovation, creating opportunities for agile startups to emerge.

Introducing Enza: A New Fintech Contender

Enza, a fintech startup founded in 2022, is aiming to capitalize on this dynamic. The company was created by Hany Fekry, formerly a managing director at Network International, and Hamish Houston, another ex-Network executive.

Having secured $6 million in seed funding, Enza is focused on developing infrastructure to support both banks and fintech companies.

Comprehensive Local Payment Solutions

Enza’s offerings encompass a wide array of local payment methods, including card processing, digital wallets, and real-time payment systems.

The founders bring significant experience to the venture, having previously led global acceptance, processing, and consumer finance divisions at Network International.

Identifying a Market Need

While at Network International, Fekry and Houston observed a substantial need for comprehensive solutions tailored to the specific requirements of banks and fintechs, particularly within the African market.

They recognized a gap in the existing infrastructure, despite Network’s strong presence in payment acceptance across the Middle East and Africa.

From Network International to Enza

Unable to find a suitable path forward within Network International to address this identified need, the founders ultimately chose to resign and establish Enza, which officially began operations in January 2023.

“This divergence in vision led us to reassess the market and develop a new approach to meet these unmet demands,” explained CEO Fekry in a statement to TechCrunch.

Leveraging Past Experience, Expanding the Scope

The team at Enza is drawing upon the knowledge gained during their time at Network International and its subsidiary, DPO Group.

However, unlike their previous employers, which primarily concentrated on card acceptance and merchant acquiring, Enza is adopting a more holistic strategy, serving both the issuing and acceptance sides of transactions.

Targeting Key African Markets

Enza’s platform is designed to cater to banks and fintechs involved in issuing payment instruments, as well as SMEs and merchants requiring acceptance solutions.

The startup’s initial focus is on three of Africa’s largest financial markets: Egypt, Nigeria, and South Africa.

Expanding Payments Acceptance within the Fintech Landscape

For numerous underbanked or unserved small businesses throughout Africa, accepting payments frequently represents their initial step into the formal financial system. Enza aims to facilitate the acceptance of both in-person and online payments for these businesses with minimal or no associated costs. This approach is designed to foster enduring relationships between banks and fintech companies.

With these relationships established, Enza’s infrastructure supports the provision of additional financial products, such as loans, savings accounts, and insurance.

Andrew Key, who assumed the role of executive director at Enza last year, explains, “Payments serve as the initial access point.” He further emphasizes that the true benefit lies in the data generated and the supplementary services that can be implemented.

Shifting Dynamics Between Banks and Fintechs

This strategy aligns with the evolving relationship between banks and fintechs in Africa. Traditionally, banks have relinquished market share, particularly within the SME sector, to companies like Flutterwave, Fawry, Paymob, and Moniepoint – the latter being Nigeria’s leading merchant acquirer.

However, banks retain significant strengths, notably their comprehensive service portfolios and regulatory compliance.

Houston notes, “Banks have come to recognize that they conceded too much territory to fintechs.” Enza’s objective is to equip them with the technology needed to regain competitive advantage.

Despite the proliferation of fintechs across Africa, banks continue to function as the primary, regulated entities underpinning the majority of payment aggregators. A common challenge, however, is a lack of clear insight into the activities of their aggregator partners and the merchants they serve.

Enhanced Transparency and Control

The founders of Enza state that a key functionality of their platform is to provide banks with greater transparency and control over their payment ecosystems. This allows them to maintain compliance while simultaneously scaling their operations.

Based in Abu Dhabi, the startup also expands the range of payment methods accessible to banks. Enza integrates with regional card networks, including Verve, AfriGo, and Meeza, in addition to global networks like Visa and Mastercard.

Furthermore, it connects to real-time payment infrastructures such as Nigeria’s NIBSS, South Africa’s PayShap, and Egypt’s InstaPay. Support for mobile money, telco wallets, QR codes, buy now, pay later (BNPL) options, and contactless payments is also provided.

• Key Benefit: Facilitates low-cost payment acceptance for small businesses.
• Core Functionality: Enables cross-selling of diverse financial services.
• Strategic Goal: Empowers banks to compete effectively with fintechs.

Utilizing Established Founder Connections

Enza is capitalizing on the extensive experience and established connections of its founders throughout the African continent to rapidly establish agreements with numerous banking institutions.

For example, Fekry formerly held the position of chief commercial officer at Emerging Markets Payments (EMP), a company later acquired by Network International, where he subsequently served as a managing director.

Throughout their professional journeys, the team has collaborated with approximately 200 banks. However, their current strategy prioritizes quality over sheer volume.

“Our aim isn’t to mirror that previous scale,” Houston explained. “We are focusing on securing between 30 and 40 strong relationships with key banks.”

Despite commencing operations only last year, this Dubai-based fintech has already processed over 10 million monthly contracted transactions via active bank partnerships in six African nations: Rwanda, Nigeria, Ghana, Egypt, Uganda, and South Africa.

Enza employs a per-transaction fee structure for its banking partners. These transaction volumes are currently increasing at a rate of 35% to 40% each month and are projected to double within the next 24 months.

Initially, the company was self-funded by its founders. When the decision was made to seek external investment, the founders opted for a focused approach.

Algebra Ventures and Quona Capital ultimately spearheaded the $6 million seed funding round. Tarek Assaad, managing partner at Algebra Ventures, stated that his firm’s investment was driven by the impressive history of the Enza leadership team in launching, scaling, and successfully exiting fintech ventures across Africa.

The newly acquired funds will be allocated to team expansion and the introduction of innovative products tailored for their banking clients throughout Africa.

“Enza was created to address genuine infrastructural challenges within Africa,” Fekry stated. “Throughout our careers, we have been dedicated to ensuring that our families and communities have access to financial services with the same ease, affordability, and convenience as those available in Europe or the United States.”